Renters Insurance
WHO NEEDS RENTERS INSURANCE?
If you rent a house or apartment and have stereos, cameras,
computers, clothing, jewelry, bicycle, televisions or other valuables
you can't afford to replace if stolen, damaged or destroyed -- YOU DO!
A renters policy can protect your investments - but you must be able to choose a policy wisely to be sure that all your possessions are covered, and that you don't purchase too much coverage. This brochure can help you make a decision about whether you might need renters insurance.
IF YOU RENT...Your landlord's insurance does NOT cover your personal property or your clothes, stereo, furniture, television, bicycle, jewelry, personal computer, artwork and other items against destruction or loss. Renters insurance, however, gives you both property and liability coverage.
Renters insurance will protect you against losses due to: fire or smoke, lightning, vandalism, theft, explosion, windstorm, water damage from plumbing.
Renters insurance will also cover you if someone slips and falls in your home or is injured by any of your possessions and then sues. The insurance should cover your responsibility to other people injured at your home or elsewhere, and includes legal defense costs if you are taken to court.
COMMON QUESTIONS
- Does renters insurance cover all of my possessions?
It depends. Some possessions - jewelry, computers - are often subject to a per-category theft limit (for example, some policies have a $5,000 limit for computers). When seeking information on renters policies, ask about the various category limits and how they apply to expensive items you own. You may purchase a floater, providing additional coverage for specific items not included in you basic policy.
- If I file a claim, will my policy be canceled?
Your rates could change. If you are not responsible for the loss or damage to your items, your insurance should not be affected. If you were at fault (caused a fire by smoking in bed), the insurance company might consider that when setting the price for your next policy. Your company might consider the number of losses, regardless of fault, also.
- Is my property covered away from home?
Yes, but coverage may be limited. Restrictions in terms and the amount of coverage might apply (from 10 percent of your personal property coverage to full value). Ask your agent for details. Your liability coverage does not change.
- As a student, am I covered by my parents'
policy?
If you are attending college, under 26 and your parents have a homeowner or renters insurance policy, their insurance may give you LIMITED coverage in the dorm, but not if you live in an apartment.
- Can I purchase a renters policy with my roommates?
If you live in a group house or share an apartment and want to purchase renters insurance, be aware that the regulations vary state to state, and policies vary significantly from company to company. Find out what regulations apply in your state. Then, shop around to find an insurance company that can accommodate your situation. Also, find out whether your policy needs to be updated if you get a new roommate or if all your roommates need to be named under the policy.
- What about unmarried couples?
Some insurance companies now allow unmarried couples who have been living together to obtain coverage. Some policies automatically extend coverage to any future resident of a policy holder's household who fits the definition of domestic partner.
- What happens if my rented or borrowed items
are stolen?
Items that are "in your possession" are covered under a standard renters policy.
- What if my insurance company does not respond
to a claim?
Your state insurance department or local consumer protection office can answer questions on filing claims and also take complaints. The phone numbers for the Washington State Insurance Departments is 1-800-562-6900.
- Is my bicycle or car covered by renters insurance?
Your bike is protected by a standard renters insurance policy. Motor vehicles are not covered. A separate insurance policy is needed to protect your car, van or motorcycle.
HOW IS RENTERS INSURANCE SOLD?
- Theft Limits
For example, most renters policies have a $1,000 total limit on jewelry that is stolen, a $3,000 - $10,000 limit for computers and $2,500 - $10,000 for silverware or flatware. Policies vary - so be sure to ask. Ask for a list of standard coverage limits so you know whether you'll need to buy floater, which provides additional coverage for some of your items.
- Cash or Replacement Value
Your policy can insure possessions one of two ways - for either the cash or the replacement value. Cash value coverage takes into account the age and condition of items at the time of damage or loss. Replacement value pays today's cost of a new item. For instance, if your five-year-old TV is stolen, a cash value policy will pay part of the original purchase price while a replacement policy will pay the current price of a comparable set. Replacement value policies tend to cost more, and there may be other requirements as well.
- Deductible Options
Find out the deductible, or your out-of-pocket cost. The lower the deductible, the more the policy will cost you.
Be Sure to:
- Shop Around
Find an insurance agent or insurance company representative with whom you are comfortable. Ask friends or relatives or consult the yellow pages. Call a variety of insurance companies and agents. Ask questions. Keep your inventory handy, so you can find the amount of coverage that is most appropriate for you ($16,000 is usually the smallest amount of coverage you can get).
- Seek Discounts
Insurance companies frequently offer discounts to their auto policy holders interested in buying a renters policy from them. You also may be eligible for discounts if your apartment or home has a security system, smoke detectors, or deadbolt locks. Additional discounts may be available depending on your age or whether you are a non-smoker. Policies vary. Examine as many options as possible.
- Read Your Policy
An insurance policy is a contract between you and your insurance company. Read the policy carefully - if you have questions or if something is unclear, call your insurance company representative. Don't sign the contract unless you fully understand the company's responsibilities as well as your own. An insurance policy spells out several obligations for both you and the company. For example, the company has a duty to defend the insured renter in court if the renter is sued. On the other hand, you must give the insurer complete, accurate and timely information.
- Take an Inventory
Before purchasing, make an itemized list of everything you own with price estimates and purchase dates (if possible). Your inventory will help ensure that you purchase the right amount of insurance - not too much or too little. Also, an inventory will help make filing a claim easier. Make copies of this inventory and keep it in a safe place outside of your home (at work, in a safe-deposit box or friend's house). Take photographs of each item; this can be helpful when filing a claim.
HOW TO FILE A CLAIM?
As soon as you become aware of a loss, write down everything - the date, time of day, list of goods stolen or damaged. Call the police as soon as possible. Then, contact your insurance company or agent to report the loss and get the appropriate claims form. Written and documented reports of losses are especially important when theft is involved. Include everything and carefully assess damages: amended claims could take longer to pay.If you have more questions, please contact WIC's toll-free consumer hotline at 1-800-664-4942. WIC is a 27-year-old Washington-based nonprofit trade association supported by the insurance industry.
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