You may or may not own the place you live in, but you own everything you brought into it.
Very often people do not purchase Renters insurance, because they think it will cost too much, when the opposite is true. For less than a dollar a day your clothing, furniture, sports equipment, electronics and most importantly YOU will be well protected. Renters insurance will help you to repair or replace your stolen or damaged property. It is not just about coverage for belongings- there is much more to it.
- Personal property (Coverage C) – as mentioned earlier, protects your belongings against damage from fire, lightning, hail, windstorm, impact by a vehicle, vandalism, theft anywhere in the world and more. Keep in mind that coverage is limited to 10% of the Coverage C if the loss occurs to the belongings that are not located at the residence premises. There are a few items that have a special limit, like money, rare coins, stamps and a few more. So, in case you have some very expensive jewelry, arts or any other valuables – make sure to schedule them.
Always choose Replacement Cost endorsement which will help you to recover your lost or damaged property at a full value without deduction for depreciation.
- Loss of Use (Coverage D) will pay the difference between your regular and additional expense. For example, your apartment was damaged in a fire and you must temporarily move out while it is being repaired. You stay at the hotel, must eat your all meals out, spend more money on gas and parking, etc. Your usual monthly expense before this was always around $5000. Now you spend a whopping $7000. Loss of Use coverage will pay that $2000 difference.
- Personal Liability (Coverage E) is to protect you in case somebody sues you for any injuries or damages that were caused because of your actions or negligence. For example, your bath tub overflows and floods the apartment below, damaging their very expensive rug and furniture. Your kid hits somebody in the head with a baseball bat and the practice…
- Medical payments (Coverage F) is for your guests in case they were hurt at your place and need some medical attention. Simply submit their medical bills directly to your insurance company.
- Last, but not least, part of any insurance is a Deductible. This is the amount you pay before your insurance coverage takes over and is applied to property losses only. The higher the Deductible – the lower the price of your insurance premium.
Few important things to remember:
- Earthquake and Flood are excluded on all California policies and must be purchased separately.
- You may want to consider adding Identity Fraud Protection- very useful in our day and age.
- Workers Compensation coverage is included on all California Renters policies and is for your maid or a baby sitter, if injured while working for you.