Renters insurance covers losses to your personal property from theft or damage from perils (fire, smoke, vandalism, flood) AND it provides liability protection. It will also provide additional living expenses if you're not able to live in your residence after a covered loss.

        The liability coverage is particularly important. Suppose that there's an accident due to your negligence that injures or causes damages to a neighbor. You could be sued for their loss or injuries. If you're legally liable for the accident, your renters policy can provide for the medical or injury payments and your legal fees if you are sued.

        Although it comes as a surprise to many people, when personal property is stolen from a car, the losses are usually covered under a renters or homeowners policy and not under the auto policy. The auto policy only covers the car and any auto equipment, such as the radio or CD player, but your stash of CDs or the golf clubs in the trunk would be your responsibility.

        Also, could you really afford to replace everything you own if it were stolen? Chances are you couldn't, at least not right away. Whether you live in a house or an apartment, replacing your belongings would probably cost more than you think. For example, the average one-bedroom apartment can easily contain more than $25,000 worth of personal property.

        Renters insurance usually costs most people about 50 cents a day and it can offer peace of mind to you and your family. Quotes vary by location, but we'd recommend a $500 deductible and $100,000 to $300,000 in liability.

        An important factor in the policy is the type of personal property protection you choose. There is a choice between ACTUAL CASH VALUE and REPLACEMENT COST coverage. The actual cash value coverage may cost less, but when you file a claim, you'll only get the value of the item at today's cost, less depreciation. This coverage takes wear and tear and obsolescence into account.
        Replacement cost coverage allows you to replace the lost item with a comparable piece. There is no reduction in the amount you receive for depreciation. In order to get replacement cost coverage, you often have to purchase a certain amount of insurance.

        How much insurance you need is best decided by taking an inventory of your possessions. Have your estimate ready when you call the insurance agent for a policy and be sure to shop around. The cost of the policy can vary between providers. Try to keep receipts for large purchases and check store advertisements for the current prices of similar items. Keep the inventory and the receipts in a safe place away from the home and remember to update the inventory annually.

        Your insurance agent will also be able to advise you on the amount of coverage you may need and you can always contact our office for more information.