A renter’s insurance policy is an affordable way to protect your personal belongings, and yourself. If you currently don’t have insurance, you are leaving yourself vulnerable to financial loss. Renters insurance covers more than just the items in your house. For example, if your car is broken into, your personal property on the renters insurance may even cover the items stolen. If a guest who is injured sues you at your apartment and you are held legally responsible, your renter’s insurance personal liability will help protect you. The standard coverage included in the renters policy features personal property coverage, personal liability coverage, and additional living expenses, in the event your building is damaged and you’re unable to stay at your residence after a covered loss. Your landlord’s insurance policy will not have coverage for any of your personal belongings.

Personal liability coverage provides coverage in the event you are legally responsible for the injuries to a guest incurred at your property. If you are sued after having people over, your renters insurance will cover the legal costs up to the personal liability limits. It is a good idea to carry at least $100,000 worth of personal liability. The liability coverage helps protect you and your assets, so your limits of liability should reflect your net worth.

Personal property coverage provides coverage for things like your clothes or couch. In the event your apartment is broken into, your renters insurance policy will reimburse you for either the replacement cost of the items or the actual cash value, depending on the policy you choose. It is important to carry replacement cost coverage on your personal property, so in the event of a covered claim you will be reimbursed the cost to replace the items, not their depreciated value. The amount of personal property coverage you select is up to you, the consumer, but make sure it is an accurate depiction of your possessions you own. If you own a lot of jewelry, collectibles, or any other items of significant value, give us a call at A.T.C. Agency, or stop by our office in Edina, MN. Depending on the item, we may recommend either a special personal property endorsement or increasing the aggregate limit of insurance.

Additional living expense is a coverage that will set you up in a hotel if you are unable to stay at home due to a covered loss. While your home is being repaired, your renter’s insurance policy will provide coverage for additional living expenses. Typically they start out at 20% of your personal property coverage, so talk to your agent about the amount of coverage you may need.

Many insurance carriers offer additional coverage’s with their renters insurance policies, they may differ from carrier to carrier. The best way to shop for a renters insurance policy is to work with an independent insurance agency, like A.T.C. Agency, we will help you navigate through the various coverage’s, to find a policy that fits your needs and budget.