Persons who live in apartments or rent a residence are fortunate. Most insurance companies can protect their assets and belongings by using a policy that is designed especially for tenants; a renters policy. Typical policies cover your possessions for common causes of loss, additional living expenses related to making other living arrangements, medical expenses for treating people injured on your premises and, of course, lawsuits. Renters’ policies will also protect the tenant’s investment in improvements to a living space made at his or her expense (such as custom-made, built-in shelves).
Protection under a standard renters’ policy is on an actual cash value basis (the cost to replace with a new, similar item, less depreciation). Replacement cost coverage is available by endorsement and is what we recommend at Frost Insurance Agency.
Certain types of property are quite vulnerable to being stolen, therefore very limited coverage is available for items such as jewelry, furs, gems, gold, silverware, pewterware, money, securities, guns and accessories. Protection can be increased by adding additional coverage to the tenant policy or by purchasing a personal article floater policy.
Additional Living Expenses
A typical tenant policy provides a limit equal to 20% of your contents insurance limit. If your contents limit is $15,000, then your additional living expenses limit will be $3,000.
Liability insurance covers you for injury you cause to others and for damage to property that belongs to others. The policy also provides for cost of a lawyer (if necessary) and most court costs.
Complete, broad, affordable protection is available to protect Renters. It’s a smart move to purchase it.