RENTERS INSURANCE
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Some common questions about
Renters Insurance

What many people do not realize is that if you rent a house or an apartment, the landlord does not provide coverage for your personal property or your personal liability. That is why it is important to have a Renters Insurance policy.

Renters insurance will cover your personal property such as furniture, clothing, stereo, TV, and other belongings from loss because of fire or smoke, lightening, theft, tornado, water damage and many other types of losses. This policy would not provide coverage for losses as the result of earthquake, floods or mine subsidence. There are separate policies available for this. This policy also does not provide coverage for normal wear and tear.

There are a number of coverage’s on a Renters Insurance policy, including;

Personal Property – This provides coverage up to a certain limit on your belongings. It is usually suggested to have a replacement cost endorsement so that any item is replaced as new rather than being depreciated because of its age.
Loss of Use – Renters Insurance pays the reasonable additional costs of temporarily living away from your home if you can’t live in it due to a fire, storm or other insured disaster. It covers hotel bills, temporary rentals, restaurant meals and other living expenses that are above and beyond what you would have normally paid if you were still able to live in your home.
Liability – This coverage provides a limit that the insurance company will pay for an action on your part that causes bodily injury or property damage to another person and that you are found legally liable for. This coverage applies to personal activities and does not cover liability arising out of a business, trade or profession.
Medical – This coverage is for paying minor medical bills of people other than the insured and their family or residence of the household that may get hurt on your property. The limits for this coverage are usually small and cover minor injuries without needing to prove the liability of the insured.

How much coverage should I have?
For personal property, one way to determine the amount of coverage you should have for personal property is to take an inventory of all of your possessions and figure out how much it would cost to replace every item. This can vary from person to person, but we usually recommend a minimum of $50,000. If you have expensive items, you may want to increase that amount or even consider scheduling them, which involves listing them as an individual item on your insurance policy with a specific value. You may need an appraisal to show the value of the item. Many people will specifically schedule items such as jewelry or laptop computers.
For liability insurance, it is important to be insured for enough to cover most potential losses and to protect your assets in the event of a lawsuit. It is also recommended to have a Personal Umbrella policy (discussed later).

What is a deductible?
A deductible is your out-of-pocket cost you will pay before the insurance company pays anything toward the loss. The higher your deductible, the lower your premium will be.

Is my vehicle covered while it is parked in the garage?
Motorized vehicles, including cars, trucks and motorcycles or mopeds, are not covered under a renter’s policy. Vehicles must be covered under an Auto Insurance policy.

Is my property covered when it is not in my home or apartment?
Yes, but the extent varies. While most companies cover your personal possessions anywhere in the world, the amount of coverage may be limited to 10% of your total coverage. A Renters Insurance policy also does not cover any items that are simply just lost.

If I have a claim what do I do?
First, do everything you can to protect your possessions from further damage. If your home or apartment was broken into or an item was stolen, call the policy right away so that you can file a report.
Call our agency as soon as possible after the loss. Our toll free number is 1-888-750-2221 or our regular number is 309-286-2221. You can then talk to one of the agents at our office and we will guide you thru the claim process. That is what we are here for. If it is after normal business hours, you can still call the same number and dial 1 and leave a message and then the agent on call will call you back as soon as possible and work with you to make the claim go as smoothly as possible. After you report your loss, you will be asked to make a list of all the damaged or stolen items.


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