A renter’s policy provides protection in three main areas:

  1. Liability
  2. Contents
  3. Additional Living Expenses

As a renter, you are probably most interested in the contents coverage. This will repair or replace your items in case of a covered loss, such as fire, smoke, wind, lightning, theft, or explosions.

Depending on the type of policy you get, you could either get the ACV (actual cash value) of your items or replacement cost. An ACV policy would be cheaper, but if you place a claim, the adjuster will determine the value of the item minus depreciation. With full replacement cost, you will be given an amount that will provide you with a new item of equal quality.

While the contents might most interest you, it is also important to make an informed decision on the liability coverage. If you are sued due to damage to the building or injury to a guest, you want to have enough money in your policy so that your insurance company can cover that loss.

Typically you have liability choices that start as low as $10,000 and can go as high as a million dollars depending on the insurance company. The most common coverage limit options are $100,000, $300,000, and $500,000. You should know that the premium difference between $100,000 and $500,000 is minimal.

Additional living expenses will provide you with some funds to allow you an alternate place to live if your apartment is damaged or unlivable to do a loss like fire or storm damage.

Just like with homeowners insurance, renters insurance does not cover for loss due to flood waters.

Contact Alliance Insurance Group today and we can discuss all your renter’s policy needs.