Lisa, a member of our marketing team, lived with her husband and son in Richmond. She knows firsthand how essential renters insurance is in protecting families from significant financial loss while renting. Now a homeowner near Tappahannock, Lisa still recalls the peace of mind her renters insurance provided during that time in her life.
Here's Lisa's straight talk:
The policy can replace or repair items such as appliances, furniture, clothing, and other personal belongings if they are damaged or stolen due to a covered event. This coverage safeguards your personal property, including items like furniture, apparel, shoes, electronics, household goods such as bedding and rugs, and most sporting or hobby equipment, including bicycles and musical instruments. Certain valuables, such as jewelry, artwork, collectibles, and specialized computer or hobby equipment, may require additional coverage if their value exceeds standard policy limits.
Renters insurance can also extend coverage to personal belongings stored in a storage unit. It protects your items from covered perils, such as fire, water damage, and vandalism, but may be subject to sublimits. These sublimits can reduce the coverage amount for your belongings and are sometimes only 10% of your total personal property coverage.
Renters insurance typically provides coverage for theft of your personal property, even if the loss occurs away from your rental residence. It also extends to personal items stolen from within your vehicle. Renters insurance does not, however, cover the loss or damage of the actual vehicle due to theft, nor does it protect the physical structure of your rental property itself in the event of theft-related damage.
Renters insurance provides liability coverage, which helps cover medical expenses and legal fees if someone who does not reside in your home is injured on your property. This coverage can also assist with expenses such as ambulance rides or hospital stays for guests injured in your home, up to your policy limits. Additionally, it can cover funeral expenses for individuals injured on your property, including accidental injuries, injuries caused by household pets such as dog bites, or accidental damage to another person’s property. If you require additional protection, you may enhance your personal liability coverage with an umbrella insurance policy.
Additional Living Expenses (Loss of Use)
Standard renters insurance may also cover living expenses if you need temporary accommodation while your home is being repaired, such as pay for hotel stays, restaurant meals or other expenses. Hotel fees and other living expenses can quickly add up to thousands of dollars.
A peril is a specific event or circumstance that can cause damage or loss to your property or personal belongings. In insurance, a peril is the direct cause of a loss that your policy may cover. Renters insurance policies clearly define which perils are included in your coverage and which are excluded.
Common perils, or events, that renters insurance includes are:
These are perils commonly excluded from renters insurance coverage:
Renters insurance generally provides coverage for replacement of your belongings, subtracting the depreciation in value due to age or wear. This is referred to as actual cash value (ACV). This might mean you would have to cover the additional expense to replace an item in its original condition, which is more expensive today.
Replacement cost coverage (opens in a new window) can bridge this gap. This type of coverage can pay the current market price for those items. It's crucial to discuss replacement cost options with your insurance agent when selecting your policy. Learn more about the difference between ACV coverage and replacement coverage.
Once you understand the difference between actual cash value renters insurance and replacement renters insurance, it's important to determine how much renters insurance you need and then to annually review your coverage with your local insurance advisor. Consider any changes to your home, such as the purchase of high valued items and access the need to specific coverage for perils that are excluded from your renters insurance policy.
You may need to add specific endorsements or added coverage for risks unique to your property, such as flood insurance. When you review your policy with your local independent agent use your declaration page as a summary of your policy, a review items such as the named insured, the property address, policy period, coverage limits, deductibles, and premium. It's important to review the entire policy to understand the details of your coverage, exclusions, and limitations.
THE NORTHERN NECK INSURANCE INTEGRITY PROMISE — We pledge to provide straight talk and good counsel from our NNINS Virginia insurance experts through our blog. While we hope you find this to be a helpful source of information, it does not replace the guidance of a licensed insurance professional, nor does it modify the terms of your Northern Neck Insurance policy in any way. All insurance products are governed by the terms in the applicable insurance policy.