Renting your house or apartment means you have less exposure to the same risks that owners do. However, that does not mean you do not need insurance coverage. Renters insurance is unique protection specifically designed with tenants in mind. It provides liability protection, guards against the damage or loss of your personal belongings, and takes care of your emergency living expenses when you are displaced from your home due to a covered event. It should not be considered an optional expense; rather, renters insurance is essential for protecting your financial wellbeing. There is no scenario where foregoing renters insurance is a good idea.
Standard Renters Insurance Coverage
A standard renters insurance policy in Minnesota will provide three primary types of insurance protection:
- Liability Insurance
- Personal Belongings Coverage
- Emergency Living Expense Insurance
Liability protection is something that everyone needs – including renters. When you are found liable for another person’s losses or injuries, the cost of damages can total thousands of dollars. Without liability insurance, you could be forced to pay claims out of your own savings account or future income for years to come. A standard renters insurance policy can provide liability protection when one of your house guests trips over your floor mat and sues you for a broken arm, or when your dog bites another pet at the dog park.
Personal Belongings Coverage
When a disaster strikes, any losses you sustain personally will be your own financial burden. Landlords generally do not provide insurance protection for a renter’s personal belongings – only damages to the rental property itself. If an apartment catches on fire, the landlord’s property insurance helps pay to repair or replace the unit, but not its contents.
Imagine leaving town for the weekend and coming home to see the back door or your rental unit kicked in by an intruder. All of your valuables are stolen, including your electronics, jewelry, and the cash you keep for emergencies. Your losses total thousands of dollars, none of which is covered by your landlord’s insurance. With renters insurance, you can relax knowing that you will be reimbursed for your losses.
Actual Cash Value vs. Replacement Value
There are two standard types of renter’s insurance protection: actual cash value and replacement cost coverage. A policy with actual cash value protection will reimburse you for the actual value of your damaged or lost belongings, accounting for depreciation. A replacement cost policy pays for reimbursement of your losses based on the cost to replace them. It does not account for depreciation of your assets.
Regardless of whether you choose an actual cash value or replacement value renters policy, you may benefit from additional coverage for special valuables. Most renters insurance limits the amount of protection for expensive items, such as jewelry and furs. Talk with your agent about the value of your belongings and whether supplemental protection could be right for you.
Emergency Living Expense Insurance
It is easy to forget about emergency living expenses until you find yourself in sudden and urgent need of housing and food for you and your family. If a fire causes smoke damage to your apartment or a tree falls onto your rental home, chances are the property will be temporarily uninhabitable while it is repaired. Renters insurance can help pay for your hotel bill and meals until you are able to return home or find alternative permanent lodging.
Save Money on Renters Insurance
At Wheaton Insurance, we provide renters insurance options that save you money both now and later. We are a hometown insurance agency working to provide our customers with excellent coverage at affordable rates. Call us today to find out how using an independent agency can save you money on renters insurance. We look forward to serving you soon.