A Beginner's Guide to Renters Insurance

California Renters Insurance is a type of property insurance that protects tenants living in an apartment. Most of the time, renters usually underestimate the costs of their properties. If you’re a tenant, having Renters Insurance could give you security in the event where unfortunate things happen.

Although landlords are liable for the building, they are not responsible for the tenants’ belongings. In case of theft, storm, or other natural disasters, you are responsible for your belongings as a tenant.

The state law does not require Renters Insurance or otherwise called Tenant’s Insurance. However, some landlords include renters policy as one of the requirements before tenants apply to live in their homes. Whether it is required or not, it is always smart to purchase this type of insurance. Moreover, it can save you from an immense financial loss when unfortunate events occur.

Claim Payments in Renters Insurance

Generally, there are two ways of reimbursement that insurance agencies usually offer:
  • Replacement Cost Value: Pays for the replacement of your damaged properties as well as things that are lost. It provides enough to replace the items at their current market value. For example, the phone you use for three years gets stolen in your apartment. Your insurer can offer the current replacement value for a new phone with a similar model.
  • Actual Cash Value: Pays for replacing your possessions based on their original prices from the time you bought them. For example, you’re using an old laptop, and suddenly it’s not working anymore. The actual cash value offers the same amount as your old laptop costs by the time you bought it. So for you to be able to buy a new one, you’d have to pay the difference.

What Does It Not Cover?

Although the coverage above could be overwhelming, there are some factors that Renters Insurance does not cover. Here is a list of factors that Renters or Tenant’s Insurance does not cover.
  • Earthquake
  • Water Damages such as floods
  • Infestations
  • Undocumented Belongings

Factors That Influence Renters Insurance Cost

Insurance companies consider some factors that influence your California Renter Insurance Cost. The rates vary by state and in the amounts of coverage. As a matter of fact, compared to other types of insurance, Renters Insurance is cheaper. Here some factors that affect the cost of your insurance.
  • Value of Your Belongings: The price of your belongings affects your insurance rate. If you have collections of jewelry or antiques, you may want to add special coverage to protect those things. It is wise to create an inventory of your belongings. In doing so, you can make the process of filing a claim easier and faster.
  • Alarm Systems in Your Apartment: You can receive discounts if you have smoke detectors or deadbolt locks installed in your apartment. Moreover, having these things installed may as well lessen the risks you will encounter.
  • Pets: Having pets will not greatly affect your insurance rates. However, if your pet causes injury or damage to your visitors or neighbors, you may need additional coverage.
Above all, Renters Insurance rate depends on which policy and insurance agency you choose to work with. You can talk to one of our experienced insurance agents if you want to get a quote. Contact Us Now.
What Does a Renters Insurance Cover?
Homeowners Insurance and Tenant’s Insurance have some similarities when it comes to coverage, such as theft and property damages. As a matter of fact, California Renters Insurance is less costly because it only covers your belongings and not the building. However, if you have expensive belongings, it may as well increase the average cost of your coverages. Here are typical insurance coverages that Renters Insurance provides.
Personal Liability Coverage
It typically covers legal fees and other related damages in case you are sued due to third party injuries or property damages. Liability Coverage can pay for your lawyer fees as well as your court fees.
Personal Properties Coverage
It covers all your possessions in your apartment. If your belongings are damaged due to storms or other natural disasters, Personal Properties will take care of the repairs or replacements. Take note that Personal Properties only cover your belongings and not the landlords.
Additional Living Expenses Coverage
It reimburses your lodging expenses when you need to move out of your apartment. If your apartment is inhabitable due to the damages, Additional Living Expenses can pay for your hotel expenses and transportation.
Payments Coverage
It helps you pay for the medical bills when a visitor gets injured while inside your apartment. It also provides medical assistance for your family and pets. Medical Payments Coverage gives visitors a lesser possibility to sue you when you help cover their medical fees.
Overall, renters insurance can protect you when unfortunate disasters happen. Although it is not mandatory, landlords can actually require it in most states. But even if your landlord does not require it, having renters insurance could be very beneficial.
From personal property coverage to medical payments, you can prevent financial losses when incidents occur in your apartment. Apply now and get affordable coverages available as soon as possible. Talk to our insurance agents to help you shop for insurance policies that best matches your needs.