What does renters insurance cover?

by Guest » Fri Jan 03, 2014 07:11 am

We have moved in our Connecticut house a week before and the owner has asked us to get a renters insurance. I don’t know whether or not it is legally binding to get one while renting a house. Even if I get a coverage, what would it save us from and how much would it cost? Thank you in advance.

Total Comments: 13

Posted: Fri Jan 03, 2014 01:43 pm Post Subject:

About the only way someone could make you get the coverage is by requiring it in the lease agreement. But even then the only way to enforce it would be to evict you if you don't get it.

Renters not only provides you coverage for your own personal property but it also provides liability coverage. If someone sues you over an injury or property damage then the renters policy can provide you a defense. It would probably cost around $300/year, depending on the amount of coverage you obtain.

If you put something on the stove, forget about it and the house burns down the owner could hold you liable for the $100,000 house you are renting. Do you have $100,000? If you fail to shovel snow from the driveway and someone slips, they could sue you for $50,000. Do you have $50,000? If you don't have 2 cents to your name then you may not need to worry about this.... but you never know.

Posted: Wed Jan 08, 2014 08:15 am Post Subject: renters insurance coverage

About the only way someone could make you get the coverage is by requiring it in the lease agreement.

Completely agree with tcope. This is the only legally binding way by which they could compel you.

Renters insurance covers your personal property in case there is a fire, theft, damage caused due to water leakage (but not from floods) from a pipe. Renters insurance policy also covers personal liability, property damage to others, etc.

Posted: Wed Jan 08, 2014 04:13 pm Post Subject:

It would be odd to be required to obtain a renter's policy unless the landlord was also demanding to be listed as an additional insured. You don't mention that in your post.

A renter's policy does not cover most physical damage to a rented property unless due to the negligence of the insured, as has been explained above.

Posted: Thu Jan 09, 2014 09:03 pm Post Subject:

What is covered under your renter's insurance will vary depending on the company you have chosen to purchase from, as well as the specifics in the policy. For the most part, renter's insurance is used to cover the personal items owned by someone who rents. This means that you should be able to cover everything that you personally own, and is not owned by the landowner. The catch with many of these types of policies is that you need to have the items listed on the policy in order for to be covered if something was to happen and your place actually burned too the ground.

Posted: Fri Jan 10, 2014 02:00 am Post Subject:

The catch with many of these types of policies is that you need to have the items listed on the policy in order for to be covered if something was to happen and your place actually burned too the ground.

That's mostly not correct. While there are limitations to coverage, most personal property is covered up to the policy limits on a non-scheduled basis (unnamed).

There are, obviously, some exclusions that need to be covered separately with things like a personal articles floater, or a jewelry or fine arts floater. Certain items, such as firearms, computers, and coin collections which have speculative values are all offered very limited coverage under the basic Tenant's policy.

The best resource is a local independent agent or broker..

Posted: Tue Jan 21, 2014 05:54 am Post Subject: What does renters insurance not cover?

Your renters insurance policy might cover many things (perhaps, you already know those). But if your roof leaks and it has been leaking for a longer period, this is most probably not covered. This is called “sweepage and leakage” and check with your carrier to see if such things are covered.

Posted: Tue Jan 21, 2014 06:06 am Post Subject: Does renters insurance cover car theft?

Does renters insurance cover car theft? Some buggers broke into my car last night while I forgot and kept it outside the garage. They stole my camera, jacket and ipod. Auto Insurance won't cover it I know, but would my renters insurance cover it?

Posted: Tue Jan 21, 2014 02:15 pm Post Subject:

Your renter's policy may very well cover such items, subject to the per occurrence deductible, which could be anywhere from $250 to $1000 or more. Coverage is provided on either an Actual Cash Value (ACV) basis (replacement cost minus depreciation, or on a full replacement cost basis (the insurer will pay you ACV initially and you must replace the items in order to receive reimbursement for the added expense after submitting receipts).

You need to read your contract to know which value applies to your loss. If ACV only, after the deductible has been subtracted from the amount of your loss, it might not be worth much to submit a claim.

For example, your camera might have an ACV of $100, your jacket $75, and your iPod $150. Total loss = $325. Your deductible of $250 means the insurance company sends you a check for $75, and a deductible of $500 means you get $0.

On the other hand, if you have full replacement cost, the insurer will still send you $75 if your deductible is $250, but will pay you the difference between the $325 ACV and the actual amount you pay to replace the camera, jacket, and iPod with "like for like" items. Camera = $175, Jacket = $200, iPod = $250 . . . total replacement cost = $425. $425 - $250 = $175 - $75 already paid = $100 balance due. With a $500 deductible, you still get $0 all the way around.

Don't think about submitting false or altered receipts -- that's called insurance fraud and it can land you in prison if convicted of a felony, or county jail for a misdemeanor.

Likewise, you cannot inflate the value of your loss by trying to replace a $150 Nikon D3300 pocket camera with a $5000 D5, or a $50 K-Mart made in China Blue Light Special ripstop nylon polyester-insulated jacket with a $500 North Face Goretex -10-degree down-filled stormshelter, or a $50 iPod Shuffle 2 Gb with a $275 iPod Classic 160 Gb and expect the insurance company to pay for those items. They have the right to make you prove those were the stolen items (receipts or other valid evidence of ownership), and if you cannot they will deny your claim.

You must also have filed a police report for your loss -- because making a false report is a separate misdemeanor offense for which you may be prosecuted.

Posted: Thu Jan 23, 2014 09:47 am Post Subject:

Your renters policy should cover it but will be subject to your deductible. However, remain cautious and consult your agent before you file any claim since cameras are considered as one of the biggest fraud items.

The agency I work for used to get many auto theft claims each years and there was one camera shop that seemed to be the only shop in the country where people would get their cameras from. The entire thing popped out as extremely suspicious to my boss. He called up the shop owner and said if we got another claim and found the receipt of his shop, then he was reporting them to the state dept. of insurance for fraud. Fortunately, we never evergot another receipt from that shop.

Posted: Tue Feb 04, 2014 05:42 am Post Subject: how much is renters insurance normally cost?

I am already having my car insurance policy through State Farm and just wondering if I should get a renters policy from them too!! I just wanted to know even if I get one, how much should it normally cost? And is it of any help? Any advise from people having real experience would be very helpful! Thanks..

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