Renters Insurance not only covers your possessions but also provides liability coverage if an incident occurs and a person suffers an injury at your rented house or apartment. Along with these important coverages, if an injured person filed a law suit (instead of or as well as a claim on your policy) the renters policy would cover legal expenses up to the limits you carry on the policy. If a person chooses not to carry a renter’s policy, all of these costs would be a person’s responsibility to pay completely out of their own pocket.

A common mistake renters make is assuming that their property is covered under the landlord’s policy, which is incorrect. The landlord’s policy covers the building itself but not any of the renter’s possessions that may be inside and this is where a renter’s policy comes into play. If your apartment or home being rented is destroyed in a fire this policy will help you put the pieces back together. If you suffer a break in and your expensive T.V., jewelry or computers are taken a renter’s policy can replace them. From clothing to electronics, from furniture to art, from sporting goods to coin collections, a renter’s policy can offer the coverage you need.

A few coverage options available include Actual Cash Value (ACV) and Replacement Cost Value (RCV). Actual cash value coverage tends to be less expensive because your personal possessions are covered at the value of the item less depreciation. Replacement Cost coverage tends to cost a little more but offers a higher value at the same time. This is because it does not take depreciation into account and covers you for what it would take to replace the item with a comparable item. Another great aspect of renters insurance is what is known as “loss of use” which is coverage that can be utilized if the apartment or home becomes uninhabitable due to a covered loss. This is coverage that pays, up to the limit on the policy, to cover your temporary living expenses until you are able to return to your home. A renter’s policy is an inexpensive way to protect you and your possessions and all it takes is a quick call to your Cupp Insurance agent to get a quote.