Renters Insurance: You Don’t Have to Own to Have Coverage
Homeowners in Oswego, Montgomery and Morris (IL) are familiar with the importance of having homeowner’s insurance. Those who rent rather than own their residence likewise have access to coverage benefits that offer protection and peace of mind.
Also referred to as tenants insurance, renters insurance offers coverage similar to a homeowners policy except that it does not include the rented dwelling or structure aside from minor alterations to it the tenant might make. The building itself is covered by the landlord’s policy, which usually has limited or no protections for tenants.
Because a renters policy concerns personal loss and injury and not the full replacement of a dwelling or structure, the cost of coverage also is notably less.
Oswego, Montgomery, Morris (IL) Renters Insurance: Types
A renters policy typically includes three kinds of coverage:
- Liability to help protect you in the event you are held liable for injury to another person or damage to their property. For example, someone slips and hurts their back in your apartment, or you accidentally break someone’s house window.
- Personal property for protecting your belongings against “named perils” such as theft, fire, freezing, smoke and vandalism. Personal property coverage reimburses for the cost of repair or replacement of items such as furniture, appliances, instruments, electronics and clothing. (Valuables such as jewelry or a coin collection may have exclusions or limitations.)
This coverage can also sometimes extend to property beyond the rented residence (e.g. an expensive guitar is stolen from a car trunk).
- Additional living expenses for costs such as meals and temporary accommodations (e.g. hotel) in the event your rented space becomes uninhabitable, such as from fire or water damage.
Each coverage type will reimburse costs up to the maximum limits specified in the policy.
Oswego, Montgomery, Morris (IL) Renters Insurance: Payout Options
In establishing renters insurance, you can choose reimbursement according to either the actual cash value or the replacement cost.
Cash-value coverage pays the original cost of the item minus depreciation. Let’s say you have a pinball machine you bought three years ago for $1,700. One day, the game is badly damaged by a power surge during an electrical storm. The insurer will pay the calculated amount of $1,700 less three years of wear and tear.
With replacement-value coverage, the insurer would pay out what it would cost to buy a replacement pinball machine today.
In most cases, a renters policy will pay the covered loss after you’ve met the specified deductible, which is usually determined by your set premium. As with most forms of insurance, a higher premium usually has a lower deductible (and vice versa).
Oswego, Montgomery, Morris (IL) Renters Insurance: Amount Needed
You might wonder how much coverage you need for your rented living quarters. If you have very few possessions, or they are mostly used items of limited value, carrying just liability coverage or a small policy with a large deductible may be sufficient for you.
On the other hand, if your apartment includes high-end art, furniture and electronics, you’ll probably want to seek broader coverage.
To make the most of your renters insurance, you’ll want to keep a current list of your belongings as well as a photo or video record of them and store this documentation in a secure location. Also keep sales receipts for purchases greater than $50 with your records. Having this information readily available will be highly useful should you ever need to file a claim.
Find the Right Renters Coverage for You
Hometowne Insurance specializes in renters insurance for Oswego, Montgomery and Morris. We can answer your questions about which coverage is ideal for you based on your specific factors. We can also help you determine which coverage limits will best serve you.
Please feel free to call us whenever you’d like to learn more about the possibilities of renters insurance.
Oswego/Montgomery: (630) 554-4040
Morris: (815) 942-1312
We are also a main source of renters insurance for nearby communities such as Aurora, Plainfield, Naperville, Batavia, Geneva and Plano.