Renters Insurance Policies

Chicago Insurance Advisors

Are you renting a house or apartment? How much are your valuables worth? Could you replace them in case of damage or loss due to fire or some other mishap? If you answered no, then you might need renters insurance.

When you are a renter, the landlord's insurance protects the landlord's property – not you or your belongings. Your clothing, electronics, and other personal belongings are yours to protect.

Renters insurance provides coverage for loss of use, which means if the property is damaged or destroyed, then coverage will pay for you to stay elsewhere until you find a new home. Personal property is covered if it is stolen. You are also covered for personal liability, in the event someone is injured in your apartment and wants you to pay medical expenses.

Policies have a deductible that you must pay. A $500 deductible means you must pay that amount before insurance will kick-in. If the amount of loss is $400, then you don't receive any reimbursement. A lower deductible means you’ll pay a higher premium, so decide if the risk is worth the extra expense. Decide the amount of personal property coverage you need by estimating how much your goods are worth.

You also need to decide if you want replacement coverage. Most items are covered for their current value. This means a television you bought a year ago has decreased in value. For enough insurance to buy a new TV, you need to insure its replacement value instead of its purchased value.

In many cases, very valuable property like diamonds, rare art or professional photography equipment is not covered by a basic policy. You need a "rider" or "floater" to get more coverage. The insurance company will need an appraisal to confirm the worth of the property. If you work from home, then discuss with your agent whether you need a separate business insurance policy.

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