With no maintenance and no long-term commitments, renting definitely has its perks. But even though you don’t own the place you call home; you still need insurance to protect your money and your belongings. Your landlord may have coverage for the building or house you live in, but it doesn’t extend to you and the things you own. Instead, you need your own renter’s insurance policy to pick up where your landlord’s coverage leaves off, taking care of you and reimbursing you for your losses after a covered event.
Understanding Renters Insurance
Indianapolis renters insurance is stand-alone coverage purchased from an independent insurance agent. A typical policy costs less per month than the price of going out to dinner, but it has the potential to save renters thousands of dollars in potential losses. Despite being very affordable, many renters opt out of this important coverage. Even if your landlord does not require renters insurance, we still recommend it as an affordable way to protect your income and financial future.
Most renters insurance policies cover personal liability, relocation expenses, and damages to personal belongings caused by a wide range of events, including fire, smoke, theft, and vandalism. Specific coverage details will vary from insurer to insurer, but partnering with Luxor Insurance means you will have the support and guidance of an experienced and knowledgeable agent who is ready and willing to help you choose a policy and answer any questions you may have.
Types of Coverage in a Renters Policy
Renters insurance policies contain several different types of coverage, each of which serves an important purpose in protecting you and the things you own against disaster. Examples of common coverage types include:
Liability coverage does more than just protect other people against accidental injuries and property damage; it protects you against the financial responsibility associated with those incidents. Renters liability generally covers you and the members of your household for financial responsibility associated with injuries that occur inside your home, as well as incidents you may be responsible for causing away from home. With enough liability coverage, you can walk away from a lawsuit with little to no out-of-pocket expenses for your legal bills, court costs, and any judgments against you. On the other hand, if your liability limits are too low, you risk having to pay for some of these expenses yourself.
When disaster strikes, you may need to find new, temporary shelter right away. You might also acquire new expenses, such as the cost of eating out if you no longer have access to your kitchen. Instead of paying for hotel bills and other temporary living expenses out of pocket, let the relocation coverage in your renter’s insurance policy cover your excess displacement costs instead.
Personal Belongings Coverage
Renters insurance also protects the things you own against damage or loss due to covered events. Although covered perils can vary depending on your policy and insurer, they can include:
- Fire and smoke
- Water discharge
- Theft and vandalism
- And more
Coverage typically extends to your items both at your home and away from it. Whether a fire ravages your apartment building or someone steals your laptop from your car, chances are your personal belongings protection will have you covered.
Choosing Your Coverage Amount
When choosing your personal belongings coverage limit, it is important to first assess the total value of your belongings. We recommend taking inventory of your home, room by room, and then separating items into categories for easy reference. Use this information to decide the coverage you might need for a total loss, as well as any additional scheduled coverage you may need for high-value items like jewelry and furs, which are typically subject to smaller ‘special coverage’ caps.
Filing a Claim
There are two factors that can affect the outcome of your claim and the amount of your settlement: coverage valuation and your deductible. Understanding what these two components mean and how they affect your coverage is essential to choosing the right policy for you.
The coverage valuation is the means by which the insurance company will calculate the value of your loss. A standard renters policy may only provide actual cash value coverage, which reimburses you for the depreciated value of your items. Since you may want to purchase new belongings after a loss, this type of valuation could leave a gap between your settlement and your actual costs. That is why we recommend upgrading your coverage to replacement value protection. This type of coverage compensates you for the full cost of replacing your items with new ones, reducing your out-of-pocket costs.
The other factor that can affect your personal belongings claim settlement is the amount of your deductible. The deductible is the dollar amount you agree to pay toward the cost of any claims you make. If you have a $500 deductible, for example, this amount will be subtracted from the loss value of your claim. Choosing a low deductible can reduce your financial burden after a loss, but a higher deductible may generate lower premiums for your policy.
Making Renters Insurance More Affordable
Renters insurance should be affordable and efficient. Although these types of policies typically have budget-friendly premiums, choosing the right carrier and policy could generate significant insurance savings. For example, some insurance companies offer discounts for renters who bundle their coverage with auto insurance. Others may offer preferential rates if you have a high credit score or if you install a security system in your home.
When you partner with Brad Seufert, you are working with an independent agent who will search for all the discounts you deserve. Our goal is to find the most competitive rates on the coverage you need. For more information about renters insurance and how an independent agent can help you save, contact our office today. We look forward to serving you soon.