Most of you probably know about the enormous fire that recently raged at Madison at Wynnewood Park apartments. Many tenants were greatly impacted, not just including tenants whose units were directed affected by flames. The smoke, water, debris, and other damages are estimated to be more than $1 million dollars. This is yet another reminder of why renters insurance is so very important!
Fortunately the landlord requires all tenants have renters insurance as part of the lease agreement. Unfortunately many landlords do not require this and far too many renters don't give enough thought about it. Many renters have the misconception that their landlords insurance policy will cover their belongings... it doesn't! And many renters think they don't have much to insure and don't see it as a necessity... but it is!
What happens when the ceiling is damaged from a hail storm and your brand new TV, surround sound system, blue ray disc player, video game system, and iPod are damaged? What happens when your diamond ring is lost or stolen? What happens when your apartment is uninhabitable due to a fire, pipe burst, or any other coverred cause of loss? What happens if you are sued because someone slips and falls?
What's Covered In A Standard Renters Policy?
A renters policy provides coverage for many types of losses. Most renters are primarily concerned about coverage for their personal property. And where they are going to live if their apartment is inhabitable, also called loss of use.
What Kinds Of Losses Are Covered?
The standard policy provides a specific list of the things that are covered (called perils) such as fire, lightning, windstorm, hail, theft, etc. Anything not on the peril list... is not covered. You have the option of adding some of the things that aren't listed such as earthquake and flood. The policy also provides loss of use coverage. Basically this means if your apartment is unlivable due to a fire, pipe burst, or any other reason covered by your policy... renters insurance will cover your costs to live somewhere else.
How Much Personal Property Coverage Do I Need?
You choose how much personal property coverage you need. Most insurance companies have a minimum limit you must purchase... but take some time to think about what you really need. Think of the worst... a fire that completely destroys all of your property. How much would you need to replace everything you own? Things add up quicker than you might think! Also, be sure to let us know if you have particularly valuable items such as jewelry, firearms, antiques, fine art, etc. Your policy has limitations on such items and you may want to consider purchasing a special rider. To get an idea of the value of everything you own here is a sample of a Home Inventory Checklist. You would want to do this for every room.
How Much Does It Cost?
Renters insurance is relatively inexpensive, especially when you purchase it from the same company that insures your personal autos. An average policy ranges from $120-$250 depending on the amount coverage you purchase.
Please pass this information along to all of the renters you know!
Please contact us for a quote or additional information.
