When you rent a house or apartment, the landlord’s insurance will protect that property owner, but what happens to your possessions inside?
Renters insurance protects your possessions against loss from fire, vandalism or theft, water damage and more.
According to a poll by the Insurance Information Institute, only 37 percent of renters have renter’s insurance compared to 95% of homeowners.
The difference may lie in the fact that some incorrectly assume their belongings are covered by their landlord’s policy, or many may underestimate the value of their possessions.
Similar to homeowners insurance, this type of insurance also covers your responsibility if someone is injured at your home or by you accidently when away from home. This can include legal defense costs if you are taken to court.
Renters insurance also provides assistance with living expenses if you are unexpectedly unable to live in your apartment because of a fire or other disaster.
According to the Insurance Information Institute, there are two types of renter’s insurance policies for property: actual cash value and replacement cost.
Actual cash value pays for the replacement of your possessions with depreciation factored in, while the replacement cost pays for the actual cost of replacing your possessions.
In most cases, losses from floods and earthquakes are not covered in standard renter’s policies. The policy also doesn’t cover losses caused by negligence or intentional acts.
Renters should also consider a floater policy or scheduling their jewelry, collectibles or other valuable property in order to get additional protection for breakage and mysterious disappearance (I.E. diamond falls out of the setting or a lost earring) to provide additional insurance for your valuables.
Renters insurance is affordable, averaging $187 annually, according to the National Association of Insurance Commissioners.
In addition, a growing number of landlords are requiring proof of renter’s insurance.
Talk to Ken Zahn at TW Group, Inc. to make sure you and your possessions are properly protected.
TW Group Inc., 850 N Cass Ave., Westmont IL 60559, 630-737-0300 www.twgroupinc.com