Renters often think that their landlord’s insurance will provide coverage for their personal belongings if they happened to be damaged or destroyed while in the rented property. This is unfortunately not the case. The insurance that your landlord is required to carry only protects the building and premises if either were to be damaged. If the property you rent happened to be destroyed by an event such as a building fire, your personal property will only be covered under a renters insurance policy. The experienced staff at Daniel Fabulic Agency in Louisville, KY will help you select a renters insurance policy that offers the protection you need for all of your personal property and belongings.
Renters Insurance Policy Types
There are generally two types of policies available to renters. These are named-perils policies and all-risk policies.
- Named-perils policies provide coverage for lost or damage property caused by specific events listed in the policy. If the policy does not list coverage for a specific event, then you will not be covered for losses incurred as a result of that event.
- All-risk policies on the other hand cover every type of loss unless specifically excludes in the policy. All-risk policies are generally more expensive than named-perils policies due to the wider range of coverage.
Renters Insurance Coverage
Not all renters insurance policies are identical, but you will find that most policies will offer similar coverage. The most common coverages include:
- Coverage for damage or loss of personal property and belongings up to your policy limit. A renters insurance policy may also include coverage for belongings stolen from your car, workplace, or while traveling.
- Personal liability coverage to protect you if someone is injured on your property.
- Loss of use coverage in the event you need to relocate temporarily.
Some optional coverages that might be valuable additions to your policy include:
- Coverage for various high-value items including jewelry, collectibles, and antiques.
- Flood insurance.
Your renters insurance policy will typically pay you what is known as actual cash value for your damaged or lost property. This means that depreciation as well as wear and tear will be deducted from the value of your property before your claim is paid. Therefore, in order to replace a lost item with a new one that is similar, you may end up having to pay some of the costs yourself.
Replacement cost coverage may be chosen as an alternative to an actual cash value policy. Replacement cost coverage will pay to replace lost items without the deduction for depreciation or wear and tear. This option will offer a bit more coverage but will also come at a slightly higher premium than actual cash value policies.
Many Kentucky residents forgo renters insurance because they think it is too expensive, but fortunately that is not the case. Nationwide, the average cost of a renters insurance policy is only $20 per month and in some instances can offer up to $50,000 in coverage. As with most insurance policies, renters can even take advantage of certain discounts to make renters insurance even more affordable.
Don’t make the mistake of leaving your personal belongings unprotected in a property you rent. Daniel Fabulic Agency is here to help renters throughout Louisville and nearby Kentucky communities with all their renters insurance needs. Contact us today for more information on renters insurance or to receive a free quote.