“Just how much is my stuff worth?”

Most people don’t realize how much their possessions are worth. The average single renter in the U.S. owns $20,000 worth of property – not including their car or other investments. So how much would you be able to replace, if something were to happen?

If you were robbed, you would likely only need to replace your jewelry and electronics. But if there were a fire, you would probably have to replace everything… Jewelry, electronics, your bed, your entire wardrobe, furniture, appliances, movies, music, and other personal effects.

You can’t rely on your luck, nor can you rely on your landlord’s insurance. Their insurance does not protect you or your belongings - only the structure itself. It’s up to you to ensure you and your assets are covered.

Renters insurance Will Cover:

  • Your possessions.
  • Liability if someone sues you for an injury they got at your home.
  • Possessions when they are away from your home, including in your car.
  • Additional living expenses. If you can’t stay at the place you’re living because of something like fire, or pipes exploding, your renters insurance policy will cover some of the costs for living somewhere else while repairs at the residence take place.
    • Living expenses coverage is usually limited to either a specific period of time, or what the insurance company considers a “reasonable length of time.”
    • To prevent abuse, there is a cap on the amount of additional living expenses the insurer will pay, usually a percentage of the total liability limits.

Renters Insurance Won’t Cover:

  • Like homeowners insurance, renters policies do not cover damage or losses resulting from flooding, landslide or earthquake – although it is possible to buy coverage for these risks separately.
  • Certain types of coverage in a renters insurance policy may have dollar limits. Additional coverage or specific policies (endorsements/floaters) may need to be added for the items below:
    • Money, bank notes, coins
    • Business property (on and off premises)
    • Securities, negotiable instruments
    • Watercraft, including trailers, furnishings and equipment
    • Trailers (other than boat trailers)
    • Jewelry
    • Furs
    • Firearms (limitation applies to theft only)
    • Antiques
    • Collectibles
    • Silverware and goldware (limitation applies to theft only)


The Big Decision – Actual Cash Value or Replacement Cost… What’s the Difference?

There are two ways to insure your possessions – Actual Cash Value, or Replacement Cost. Simply put, Replacement Cost is better.

Insuring at Replacement Cost has a higher up-front cost (about 10% to 15%), but if something happens to your possessions, the potential payment from the insurance company tends to be much higher.

Overall, though, renters insurance tends to be fairly affordable - usually between $80 and $400, depending on your limits.

How To Save Money on Renters Insurance

  • Like other kinds of insurance, you can save money by raising your deductible.
  • If you are married, living with a significant other, or live with a roommate, you ought to have everyone - and all the possessions - on the renters insurance policy.
  • Combine your policies (auto insurance & renters insurance, for instance) with the same insurance company. Discounts can go as deep as 15% for multi-policy clients.

What Do You Own?

You should be keeping a written and visual inventory of all of your possessions. Especially for items with higher sticker prices, you should write down:

  • Model numbers
  • Serial numbers
  • Date of purchase
  • Price

Make a written copy of your inventory and keep it at another location, along with your photographs and/or video of the items. A safe deposit box is a good place to keep such records.

Because the risk that you’ll have a claim is statistically higher, if you own a dog, particularly a Rottwiler, Doberman, or Pit Bull, it might be more difficult to get renters insurance.

At Balcos Insurance, inc. we’re here for you. Our insurance professionals are independent agents and can shop many different companies for you to find the best price and coverage available to you. Call today for a free, no-obligation quote.

(877) 783 – 0335

© 2008, Mark S. Balcos.  The reader assumes all responsibilities for his/her own actions in regards to any items discussed in this report.  Adherence to all applicable laws and regulations, federal, state and local, governing the use of any product or service described in this report in the US or any other jurisdiction is the sole responsibility of the reader.  The publisher and author assume no responsibility or liability whatsoever on the behalf of the reader of these materials. The reader is encouraged to consult directly with his/her insurance professional.

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