Whether you’re leasing a studio apartment, or sharing a rental home with others, protecting your personal possessions from the unexpected is a top priority. This is where renters insurance can provide financial peace of mind. A typical policy offers extensive coverage and is notably budget-friendly. Here are answers to some frequently asked questions about how most plans work.

Common Questions Regarding Renters Insurance

What does it cover?

Renters insurance pays for the repair and replacement costs of personal items damaged by perils such as fire, strong winds, hail, theft, and vandalism. Depending on the policy, coverage can extend to water leaks stemming from broken appliances and plumbing. If a guest is injured in your rental residence, many policies will pay for their medical treatment costs. Most insurance policies cover your damaged or stolen personal property if the items are with you while on vacation or traveling by car. 

What’s not covered?

Damages caused by natural floods, tornadoes, and earthquakes are not covered. Some policies won’t cover damage caused by termites and other pest infestations. High-end items such as expensive art pieces, musical instruments, and jewelry may not be covered unless the policyholder is able to add a floater to include them. Doing so increases the coverage limits and premiums. 

How much will I receive if my property is stolen or damaged?

There are two thresholds that renters insurance providers consider, which are replacement cost and actual cash value. Replacement cost pays for the amount to replace your personal item. For instance, if your flat screen is stolen, you’ll receive a check for the amount you previously paid to get a replacement.

With actual cash value, the amount is typically the current value of a damaged or stolen item. For instance, the cost of the stolen item could be lower than what you initially paid when you made the initial purchase.

Are my roommates covered?

Your roommates’ personal property would not be covered under your renters insurance policy, but you can add them to your policy. However, doing so could increase your premiums, which is the monthly or annual amount you pay. Adding roommates can be especially dicey if someone needs to file a claim—your premiums may increase. It is generally advised that everyone in a rental residence has separate policies. 

Securing reliable renters insurance is worth the investment. Since 1988, Southern Insurance AL in Foley has provided customized coverage designed to protect personal property. Their team of friendly and experienced agents at the family-owned business will gladly provide you with a comprehensive comparison of policies from leading insurance companies. Call (251) 943-3340 to get a free quote, or visit the website for the complete lineup of insurance options.