Protect Your Belongings with Renters Insurance

Unforeseen events can occur at a moment’s notice. An unexpected break-in or an accidental fire can wreak havoc on your home. Although your landlord’s insurance typically covers the building itself, it won’t cover your personal belongings. Fortunately, renters insurance can provide a financial safety net for your possessions should they become damaged or stolen due to a covered peril.

What Does Renters Insurance Include?

Renters insurance offers financial protection for your personal property when renting your home. It commonly includes two main types of coverage:

1. Personal property coverage may cover your belongings, such as furniture, electronics, and clothing, against risks like theft, fire, and certain natural disasters.
2. Liability coverage may cover legal expenses and damages if someone is injured when visiting your rental home.

Your policy may also provide additional living expenses to help pay for temporary housing if you can’t live in your rental home due to a covered event.

Actual Cash Value vs. Replacement Cost

When choosing a renters insurance policy, it’s essential to understand the difference between actual cash value (ACV) and replacement cost coverage:

Actual cash value—This type of coverage pays out the current value of your belongings, factoring in depreciation. For example, if your five-year-old TV is stolen, ACV will pay what it’s worth today, not what you paid for it.

Replacement cost—This coverage pays the amount needed to replace your items with ones of similar type and quality without deducting for depreciation. While this coverage might come with higher premiums, it may provide more comprehensive protection in the event of a claim.

Acquire Coverage Today

Karla’s Insurance Inc. can help you understand what renters insurance includes, why it’s important, and what types of coverage are available. Contact us today for a personalized quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.