Hi, this is Jimmy with Southwest Insurance Group and I just wanted to touch base with you guys today on renters insurance policies. We’ll talk about the main four things every renter needs to know!
At the base, renters insurance policies cover your own personal belongings- whether that be your clothes, your TV, your furniture, etc. Keep in mind that it is separate from building insurance that your landlord or apartment complex would have to cover structural damage.
In addition to personal belonging coverage, renter’s policies also include personal liability protection. That will be there in the event that somebody brings litigation against you for an incident that happened either in your apartment or the home or whatever dwelling type that you rent. For example, you may have a dog that happens to bite one of your neighbors. If the neighbor wants to sue you for medical expenses related to the dog bite, your renters policy may protect you from having to pay for that personally. You can determine your coverage needs by taking an inventory of your personal belongings and their replacement costs.
What most people don’t know about renters insurance is that it actually also covers what we in the insurance world call Off-Premise Coverage. With a renter’s insurance policy, that will actually cover your property that is stored in a separate location from the primary insured property.
So say, for example, you’re at the grocery store and you left your laptop in the backseat of your car. While you’re in there somebody broke into your vehicle and stole your laptop. Your car insurance policy would cover the cost of the damage to your car, while your renters insurance policy would cover the cost of the stolen property. Most people aren’t really familiar with that side of renters insurance policies, so it’s super helpful to know this!
Additionally, it is important to know that a Renters Insurance Policy may cover the cost for you to relocate in the event that you can no longer live in the building that you are renting. For example, if there’s a flood, tornado, or similar event, your renters insurance policy may actually cover you for relocation. The typical coverage limits would be 30-50% of your insured personal property to cover relocation expenses.
Lastly, there are a couple of ways you can reduce your renters insurance costs. One great way to save money on your renters insurance policy is to actually bundle it together with your auto insurance policy. What that means is if you have a renters insurance bundled together with your auto insurance, with the same company, you’ll actually realize a cheaper rate for both your renters insurance and your auto insurance as well. Another way to save money is to increase the deductible you would pay in the case of claims. For example, if you increase your deductible from $250 to $500, then you could create an annual savings of up to 15% of your premium.
Renter’s insurance coverages are usually very inexpensive- averaging 15 to $20 per month. It is definitely something super important to carry, so for all you renters out there, make sure you take a look at your current renter’s policy. If you don’t have one, or you would like to review yours, give us a call here at Southwestern Insurance Group. We would love to walk you through that.
