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What Coverage And Deductible Options Are Available For Renters Insurance?

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The deductible is the portion of a covered loss that is your responsibility. Although deductibles vary from state to state and company to company, they are typically available in amounts such as $250, $500, or $1000. Generally speaking, higher deductibles lower your premium, but increase the amount you must pay out of your own pocket if a covered loss occurs. You need to determine how much you are willing to pay in order to save on your premium.

Personal property coverage protects personal property in your home, such as clothes and furniture. It also provides protection for your personal property you may have with you while you are away from home. Coverage for your personal property may include losses caused by fire or lightning, weight of ice, snow or sleet, explosion, aircraft and vehicles, smoke damage, windstorm or hail damage, theft, falling objects, vandalism or malicious mischief, and freezing of plumbing systems.

Renters insurance provides payment for certain losses when your home is damaged and rendered uninhabitable because of an insured loss. The actual loss incurred for increased expenses over and above what you normally spend for food, shelter, and related items for the shortest time required to repair or replace the premises up to 24 months.

This coverage can automatically increase the amount of your insurance protection on your personal property as inflation changes the cost of living. These changes are based on the movement of an inflation index and would be reflected in the premium at each annual policy renewal.

A renters insurance policy could also cover medical expenses up to the policy limits for people who are on your premises with your permission and are accidentally injured.

You may also have optional coverage on your renters insurance policy that would protect your personal valuable possessions worldwide, protect against earthquake damage, waterbed liability and a personal liability umbrella policy for a million dollars or more of personal liability protection for many situations that may not be covered by your basic renters insurance policy.

Next Page: How Much Renters Insurance Coverage Do I Need?

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