Renters and homeowners insurance help alleviate the financial
burden you would have if your possessions were destroyed or
stolen — or if someone were injured on your property or through your negligence.
Renters Insurance
Renters insurance is the type of coverage most overlooked by consumers.
If you rent your home, apartment or condominium and do not have renters
insurance, you have no coverage if your possessions are stolen or damaged
in a burglary, windstorm or fire. You would not be covered if you were held
legally liable for injury to someone or for damage to their property.
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Do not assume your landlord’s insurance will protect your possessions.
Landlords usually carry insurance only on the building itself.
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You need renters insurance if:
- You are a student and not covered by your parents’ homeowners insurance policy.
- You do not own a home that is covered by a homeowners insurance policy.
- You live in military housing. The federal government may provide minimal,
limited coverage for your personal possessions if they are damaged or stolen
from your quarters. Your personal possessions are your responsibility. Determine
the limits and extent of your coverage. You may need supplemental coverage to
fully protect your assets.
| Coverage |
Description |
| Personal property |
- May be purchased to cover named types of losses — named perils.
- Named perils policies cover property only if it is
stolen or damaged by a cause named in the policy.
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| Liability |
- Pays for medical expenses or repairs if you are legally liable for
someone else’s injuries or property damage. For example, if a neighbor
trips on your rug and breaks an arm, liability coverage would pay the
medical bills.
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About Premiums
When purchasing a renters policy, you may choose how the insurance
company will assess the value of your property.
- Actual cash value (ACV) policies: Replaces your damaged or
stolen property minus a deduction for depreciation.
- Replacement cost policies: Replaces your damaged or stolen
property at the price you have to pay when you replace or repair it.
These policies are more expensive. To claim replacement cost, you must
actually replace or repair the item.
To Lower Costs
- Raise your deductible.
- Maintain a good credit rating.
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