The Biggest Blunder People Make When It Comes to Renter’s Insurance Is Not Getting Any!

1.    Is all my stuff covered?

Most policies cover the bulk of your  personal property—clothing, furniture, artwork, electronics–with limits on jewelry, fur and silverware.   You can buy additional coverage for these restricted classes.

Computer equipment is typically also included. However, if you work primarily from home, it may not be. Additional coverage is usually available for business equipment you own.

2.    What “perils” are covered?

Usually your insurance will cover you against theft, fire, smoke, explosions and water damage from bursting pipes and overflows.  Breakage (for example, your cat knocks your laptop onto the floor) is typically not covered.  

Storm coverage is a bit of gray area; damage from wind is generally covered, but water that seeps through a roof or wall is generally not.

If you’re in a ground level or below-grade apartment, however, you typically won’t be covered for any damage from floodwaters or excessive rainfall.  The best approach is to be proactive:  You might also think about buying flood insurance.

3.    What happens if someone gets hurt in my apartment?

In addition to providing liability coverage for damage inflicted by you to your apartment or another apartment ,your renter’s insurance covers you for injuries sustained by others inside your apartment, like when your part-time housekeeper slips and breaks a leg on your wet bathroom floor

 It’s worth noting that liability coverage is fairly inexpensive. A basic policy typically comes with $300,000 worth of liability coverage which has become the standard amount but you can raise this limit to $500,000 if you choose to.  If you have assets you want to protect, this is recommended, as you can be sued personally for damage and personal injury.

4.    Does my policy cover my roommates too?

Renter’s insurance typically covers spouses and immediate family members who live with you, but things get trickier when it comes to roommates.

Usually, only two roommates can be named on a policy—and you’d better have a great relationship:  Checks for damage are made out to both of you, even if it’s your laptop that was destroyed and your roommate has long since moved out. For more info, see 5 Things All Roommates Need to Know About Renter’s Insurance.

5.    Is my cat  covered too?

If your cat scratches someone inside or outside your apartment, the liability portion of your renters insurance usually covers this—

6.  Is my stuff covered if it’s damaged or stolen outside of my apartment?

Most policies cover off-premises damage caused by fire, water damage from burst pipes, and vandalism. So that means if the drycleaners catches fire and destroys half your wardrobe, or your storage locker floods from a burst pipe, you may be covered. 

If your personal property is stolen outside your apartment, that may also be covered.   Or you may be required to take out extra insurance. The cost typically charged annually for off-premises theft insurance is probably worth it if you travel a lot with expensive suits or store a $3,000 bicycle in the basement.

7.    How much does renters’ insurance cost? How do I know how much to get and how big should my deductible be?

In Nebraska, renters’ insurance policies typically cost as little as $120 a year for minimum limits. Standard coverage levels for property damage are around $25,000-$50,000 and can go substantially higher. Calculate how much you need by adding up the replacement value of your belongings, NOT the cost of what you may have paid for them 5 or 10 years ago (don’t forget to run the numbers for your clothing, the most commonly undervalued category). 

 Many renters’ insurance policies come with a $250 minimum deducible. You can save about 10% by choosing a $500 deductible and another 10% going to $1,000 deductible.

8.    How long has the insurance company been in business?

It is useful to buy renters insurance from an insurance company that’s been doing business in your area for years

Check your insurer’s financial stability by looking them up on A.M. Best (http://www.ambest.com/) You  want to buy insurance from a top-rated, financially secure company.