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Renters Insurance Coverages  

Renters insurance policies typically include three types of coverages: personal property coverage, loss of use, and personal liability.

  • Personal property coverage pays to repair or replace your personal property, up to your policy’s dollar limit. In addition to a total dollar limit, policies may limit payments for certain kinds of property.  Common limits are $100 for cash, $2,500 for personal property used for business, $500 for valuable papers, and $500 for jewelry, watches, and furs.  
    Renters insurance also covers your luggage and other personal items when you travel.  This coverage is usually limited to 10 percent of the amount of your policy or $1,000, whichever is greater.
  • Loss of use pays your additional living expenses for things like food and rent if you must temporarily move from your house or apartment.  Loss of use coverage is generally limited to 20 percent of a policy’s personal property coverage.  For example, if you have $25,000 in personal property coverage, your loss of use coverage would be $5,000.
  • Personal liability protects you against a claim or lawsuit if someone is injured in your home.  A renters policy typically provides $25,000 in liability coverage and pays your legal costs.

Note: Ask about buying additional coverage if the value of your personal property exceeds your coverage limits. People often buy endorsements to add or increase coverage for jewelry, fine arts, antiques, computers, and electronics.

Also consider additional liability coverage if you don’t think the basic limits are high enough. Your company might require higher limits if you have potentially dangerous items like a pool or trampoline.

Actual Cash Value vs. Replacement Cost Coverage

Renters policies usually pay for losses on an actual cash value basis.  This means the insurance company will subtract an amount for depreciation and wear and tear from the value of your property before paying your claim.  For example, if someone steals your five-year-old television, the insurance company will only pay you the cost of the television minus the depreciation and your deductible. The settlement amount will not be enough to buy a new TV similar to the one that was stolen.

For a higher premium, you can buy replacement cost coverage.  Replacement cost coverage pays what it would cost to replace your property, minus your deductible and up to your policy’s dollar limit. This coverage could provide you with enough money to buy a new TV like the one that was stolen.

Rental Insurance is great for college students, apartment renters, home renters, and condo renters. Also Rental policies can be combined with Auto policies for a multipolicy discount with most of our major carriers.


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