Renter’s Insurance

Many people who live in an apartment think that they cannot afford renters insurance. That belief could not be less true. Renter’s insurance is inexpensive compared to other insurance policies. In fact, if it is tied to another policy (such as auto), the discount for the auto policy will almost completely offset the cost of the renter’s policy. That amount is cheap, considering that you are likely to have big-ticket items in your apartment like a big-screen TV and a computer system. The replacement cost of such items, should they be stolen or lost in a fire could run into the thousands of dollars.

Covered events include fire, theft, vandalism, and a number of others. However, Renters insurance will not cover damage due to a flood, which requires a separate policy.

What does a renter’s insurance policy cover?

Renters insurance can cover either the cash value of property or its replacement value. The cash value is the depreciated value of something like a TV, which would likely be less than what you paid for it, depending on how old the appliance is.

The policy can also cover living expenses if your apartment has been destroyed by a covered event, such as a fire, and you have to stay in a motel while finding another place to live.

Finally, the policy can cover your liability if a guest has an accident while visiting you in your apartment. That provision can save you potentially hundreds of thousands of dollars if you are found to be at fault for someone else’s misfortune.

Renters insurance is not a “nice to have” thing but is something that is vital to protect your property and your bank account. You may not need it, but if you ever suffer a catastrophic loss, you will be glad that you have a renter’s insurance policy.

For more information on rates, deductibles, and levels of coverage, contact the Dryden-Kamis Insurance Agency in Illinois.