Go Hoos! C’ville UVA Students and C'ville Community: Common Renters
Insurance Questions
If you are interested
in rental insurance, call your local Charlottesville Allstate Agency: C’ville
Allstate Insurance at 434-293-2886 or email at georgejaffe@allstate.com Our website
is: https://agents.allstate.com/george-jaffe-charlottesville-va.html
By Valerie M., from
Allstate Blog.
Edited by Annette
Cashatt
I’m forever surprised
by the fact that many renters don’t carry rental insurance to protect against
the destruction or loss of their personal possessions: While the majority of
American homeowners are insured, the Insurance
Information Institute recently conducted a
survey that showed only about 30 percent of renters had rental insurance! This
means nearly 70 percent of renters are without coverage should fires, thefts or
other unfortunate events damage or ruin their possessions. Yet, according to
the latest data, the National
Association of Insurance Commissioners estimates the average renter’s policy costs between $15 and $30
a month, depending on the location, size and contents of the rented unit.
Compared to the amount it would probably cost to replace everything you
own if the unexpected happened, that’s a small price to pay for the peace of
mind insurance can provide.
Renters are made up of
a wide variety of people, from college students (go Hoos!) living in their
first off-campus apartments to retired couples downsizing to a rented condo.
And, since many renters aren’t clear on just what renters insurance is all
about, I’ve collected some of the most frequently asked—and misunderstood—questions
that I regularly answer.
Q: What does renters insurance
usually cover?
A: A renters insurance policy typically includes a few types of
coverage: personal property protection, which helps protect your belongings in
case of a covered loss; liability protection, which can help protect you
financially in case someone is injured in your home and files a lawsuit;
reimbursed living expenses, which helps cover additional costs of staying
somewhere else after a covered loss renders your home uninhabitable; and guest
medical protection, which can help pay medical expenses for someone injured at
your home. For example, guest medical protection may cover you if a classmate
is studying late at your place and has an accident while there.
Q: Doesn’t my landlord’s insurance policy
protect my stuff?
A: No. Landlords
typically carry insurance to cover structural damage to the actual building
you’re living in, such as your apartment or the house you’re renting, but this
type of insurance doesn’t extend to protecting your personal possessions. And,
while some landlord insurance protects against limited damages caused by
tenants, you could still be held liable for damages in certain circumstances,
for example if you caused a fire or plumbing accident. In these situations,
renters insurance may help give you the protection you need.
Q: If I don’t own many expensive
possessions, why do I need renters insurance?
A: You might not think
your possessions are worth that much, but when you consider replacing all of
the electronics, clothing, furniture and appliances you own, the costs quickly add up. Even
a small fire, for example, can easily leave you with a price tag in the
thousands of dollars to replace damaged or lost items. In contrast, for
approximately the cost of a pair of movie tickets each month, a renter’s
insurance policy can give you priceless peace of mind.
Q: What is personal liability
insurance, and is it included?
A: Liability
coverage helps protect you if someone is injured at your home and sues you.
Many renters insurance policies include personal liability coverage, but you
should check your own policy to make sure what coverage is included. If you’re
concerned about the amount of your coverage, check the limits of your
particular policy, and discuss with your agent if you feel further coverage is
needed.
A: Your computer is one
of your personal possessions, so if you have a rental insurance policy with
personal property coverage, that protection would likely extend to your
computer. But, there are a couple of things to take into account when you’re
trying to figure out whether your computer is protected. The first is the
limit, or the maximum amount of money your insurance company will pay in the
event of a covered loss. If your computer is worth more money than the limit on
your policy, you may want to consider purchasing additional coverage.
Another thing to take
into consideration is whether your policy offers replacement cost coverage,
which will pay enough for you to purchase a new computer of the same kind, or
actual cash value, which reimburses you for the amount of money you might reasonably
expect to receive if you sold the item today.
After a few questions
like the ones above, I see many renters become very interested in protecting
themselves and their possessions. Often, they want more information on the
subject, and I invariably send them to Renters
Insurance Made Simple by Allstate. It’s a
free, downloadable guide that’s easy to follow and contains everything from how
to read a policy to how to file a claim.
If you are interested
in rental insurance, call your local Charlottesville Allstate Agency: C’ville
Allstate Insurance at 434-293-2886 or email at georgejaffe@allstate.com Our website
is: https://agents.allstate.com/george-jaffe-charlottesville-va.html
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