Renters insurance provides protection against both property loss and liability in the event that you cause injury or property damage. To learn more about what that means, we’ve covered some basics about each.
Renters insurance covers your possessions against damage for things such as fire, smoke, lightning, vandalism, theft and water damage—but not flooding—to name a few.
It also extends beyond on-premise theft and hazards, covering property that is stolen from your car, or lost or damaged anywhere you happen to be.
In addition to protecting your personal property, renters insurance also protects you in the event that you are responsible for injury or property damage to others. That means you’ll likely be protected if someone slips and sprains their ankle at your annual birthday bash.
Liability also provides coverage for legal defense costs and judgments in a lawsuit, whether the incident occurred within your rented residence, or elsewhere.
There are two personal property coverage options to choose from: replacement cost value or actual cash value. We recommend insuring your personal property for its replacement cost value. Here’s an example to illustrate the difference:
The furniture you bought a few years ago for $650 is now worth only $100, but today costs $900 to replace. With an actual cash value policy, you would get reimbursed the current depreciated cost minus your deductible. However, if you have replacement cost for your personal property, you would collect the full cost to replace the furniture, less your deductible.
The longer you own your belongings the less value they hold. Replacement cost value ensures that you can replace yesterday’s purchases at today’s prices.
Contact Peoples First Insurance today at (850) 770-7047 to learn more about all of our personal risk management and insurance solutions for your home, auto and life.