Home Property Insurance Renters Insurance


Renters Insurance

Q. Is my stuff covered away from home?

A. Yes, but coverage amounts vary from 10% of your personal property coverage to the full value.

Q. As a student, am I covered by my parents' policy?

A. If you're in college, are under 26, and your parents have a homeowners or renters insurance policy, their insurance might give you limited coverage in the dorm, but not if you live in an apartment.

Q. Can I purchase a renters policy with my roommates?

A. Yes, but the regulations might be different from state to state, and the policies might also be different from company to company. Find out what regulations apply in your state and then shop around to find an insurance company that can help your situation. Each roommate's name should be included on the policy.

Q. What about unmarried couples?

A. Some insurance companies now allow unmarried couples who have been living together to obtain joint coverage, rather than two separate policies. Each person's name should appear on the policy.

Q. What happens if my rented or borrowed items are stolen?

A. Items that are "in your possession" are covered under a standard renter's policy.

Q. Is my bike or car covered by renters insurance?

A. Your bike is covered, but vehicles aren't. You need to get a separate auto insurance policy to protect your car, van or motorcycle.

HOW DO YOU BUY RENTERS INSURANCE?

1) Take An Inventory

Make a list of everything in your apartment. Record model numbers, serials numbers, date of purchase and price of item. Take photographs or make a video of these items.
Give one inventory to your insurance agent, and keep another for your self.
Keep your inventory and visual record of your things outside of the apartment maybe in a safety deposit box or at the office.

2) Ask About

Theft Limits - For example, most renters policies have a $1,000 total limit on jewelry that is stolen, a $3,000 - $10,000 limit for computers. Ask for a list of standard coverage limits so you know whether you'll need to get additional coverage for some of your stuff.

Cash Or Replacement Value - Your policy can insure your stuff in one of two ways--either for the cash value or the replacement cost.
Cash value coverage takes into account the age and condition of items at the time of damage or loss. You would be reimbursed for the value of the item minus depreciation.
Replacement value pays today's cost for an item of similar kind or quality.

Deductible Options - Find out about the deductible or your out-of-pocket cost. Keep in mind that raising your deductible will usually lower your premium

3) Discounts

Insurance companies frequently offer discounts to their auto policyholders interested in buying a renters policy from them. You can also get discounts if your apartment or home has a security system, smoke detectors, or deadbolt locks. More discounts might be available depending on your age or whether you're a non-smoker.

4) Shop Around

Look on the Internet, ask friends or relatives or flip through the yellow pages to find the agent that is right for you. Call a variety of insurance companies and agents and ask a lot of questions. Keep your inventory handy, so you can find the amount of coverage that is most appropriate for you.

$16,000 is usually the smallest amount of coverage you can get.

5) Review Your Policy

Review your policy with your insurance professional so that you understand what's covered. For example, flooding is not a covered peril in a renters insurance policy. However, if you live in a flood prone area, you may want to consider purchasing a flood insurance policy.