1) What does a renter’s insurance cover?
Generally a renter’s insurance policy covers the following: Theft, Vandalism, Smoke (if sudden and accidental), Sudden and accidental discharge of water, Fire and Lightning, Windstorm or Hail, Explosion, Glass Breakage, Falling Objects, Vehicles, Weight of ice, snow or sleet, riot or civil commotion, Additional living and eating expenses, liability protection.
2) I got a cheap renters quote for $15 per month. Should I take it?
Whoa! Certainly there are ways to minimize a renter’s policy premium such as the amount of property insured, the deductible and limits of coverage. Be sure to understand all aspects of what you are quoted. For less than the cost of a pizza you might be able to significantly improve your policy’s limits. The saying “you get what you pay for” means everything in insurance.
3) Do I really need an agent for a simple renter’s policy?
The value an agent adds is can be worth thousands of dollars if you aren’t covered for something you assumed was included in your policy. The agents job is to advise you now, after you purchase your renters policy and of course in the event of a claim. Part of having an a relationship with an agent is to help you as your needs change in all stages of your life.
4) What is ACV and RC?
ACV otherwise known as Actual Cash Value is one way to get a cheaper policy premium but also can seriously diminish the amount of you receive in a claim. If you were to lose your television in a fire and you had an ACV policy you would only receive what the ‘cash value’ is. If the TV were a few years old it might only be worth half of what you paid for it. RC also known as Replacement cost, is a type of coverage where you get the full replacement cost of the lost item. In the same example, if your TV was lost in a fire and you paid $900 two years ago but the same TV is now $1,200 you would get the full replacement value. Beware of the low cost renters quote from your current provider as it might contain the ACV endorsement which is clearly not as robust as a policy with Replacement Cost coverage and that is why you are buying the policy in the first place right?
5) Is liability coverage really worth it?
Liability coverage normally comes standard with $100,000 of coverage. For a nominal increase you can get 300,000, 500,000 or even 1,000,000 in protection. Liability protection can be worldwide protection (varies by carrier). Generally we recommend that you cover your total assets at a minimum; however, even if you are still building your financial future, one liability claim against you could result in a judgment against you. Would you rather have to pay someone via a wage garnishment for many years or have the insurance company pick up the tab? For less than $5-10 bucks a month the choice is a ‘no-brainer’.
6) I just got engaged! My wedding ring is covered by my renter’s policy correct?
Congratulations on the engagement! Not so fast on the renters policy! Generally renters insurance covers your personal property and it may cover some basic jewelry amount however, insurance carriers normally require a ‘floater’ or ‘rider’ to increase valuables such as jewelry, watches, art, furs, silverware etc. In most cases an appraisal is required to verify the value. Be sure to inquire before you assume you have coverage for that diamond!
7) Are there any additional discounts I might qualify for?
Yes! If you also insure your car with the carrier you can get an auto/renter discount. Likewise the discount on the auto insurance can be a real savings! There can also be discounts if you also have your life insurance with the same carrier. Be sure to ask us for all available discounts!
8) I have another question but it’s not listed here?
Call us directly or email us anytime. We are here to help you get the best coverage for the least amount of premium without sacrificing coverage or a great insurance carrier. We look forward to hearing from you!
