What Does Renters Insurance Cover?

Our most commonly asked renters insurance questions outside of premium costs are always, “How much coverage should I get?” And “How am I protected?”

The sample breakdown below outlines recommended coverage amounts and what property or belongings are covered. Keep in mind there are state to state limits that also vary by carrier. Your agent will work with you to itemize your property and determine what coverage levels meet state and carrier requirements and keep you protected when you need it most – in the event of damage, disaster or loss of use of the dwelling.

 

Recommended Coverage: Personal Property

Our Recommendation: $20,000

Whether you’re replacing priceless family heirlooms, electronics, furniture or other items, personal property coverage allows you to replace what’s lost. Your agent will work with you to determine whether this amount is sufficient based on itemizing your belongings.

 

What does Renters Liability cover?

Our Recommendation: $100,000 minimum

A landlord relies on a tenant’s rental policy to cover any damage to the property during the tenancy. Whether the damage is minor or catastrophic, ensuring there’s enough coverage to pay for liability expenses can save plenty of restless nights.

This coverage also includes medical payments to others. If an injury occurs on the property that the tenet is found liable for, this part of the coverage pays for medical bills and other associated costs. If a tenant is found legally liable for harm to someone else on the property, this portion of the policy kicks in.

 

Renters Loss of Use coverage

Our Recommendation: $10,000

When disaster strikes or home repairs are needed, Loss of Use funds can assist. For example, if damage to the home results in loss of use of a kitchen, this coverage can pay for meals outside the home until the issue is fixed. If the tenant can’t dwell in the home for whatever reason, hotel fees and transportation costs may be covered. Loss of use can be incredibly helpful when the entirety of the home or certain functional parts are inaccessible for any number of reasons.

 

Renters Replacement Cost Value (RCV) Coverage vs Actual Cost Value (ACV) Coverage

Depreciation is a factor in ACV policies. This means that claims pay out the cost of the item, minus the depreciated value since its purchase.RCV pays out the amount required to replace get the same or similar item, and depreciation is not a factor.

Your agent can give you more information on which situation would benefit you most and why.