Renters insurance: Part 2, additional benefits

So last week I talked briefly about why it’s important to have renters insurance, hopefully I convinced you that it’s a good idea. But if your still not convinced that you need it, let me give you a few more benefits. I guarantee there’s a couple you haven’t thought of.

Basic home insurance policies are typically known by a number. For example HO-4 is the standard number for Renters and HO-6 is the standard for condo owners and each covers losses to your personal property from 17 types of risk:

Fire or lightning
Windstorm or hail
Explosion
Riot or civil commotion
Aircraft
Vehicles
Smoke
Vandalism or malicious mischief
Theft
Damage by glass or safety-glazing material that is part of a building
Volcanic eruption
Falling objects
Weight of ice, snow, or sleet
Water-related damage from home utilities
Electrical surge damage

Some items that are not listed that may require you to get additional policies to cover are earthquake and flood. Now earthquake might not be as big of a deal in our area but depending on where you live, flood might be something to think about. So keep this in mind when you contact your agent.

Also, when you are shopping for renters insurance make sure to look out for the words ACV or “Actual Cash Value”. This basically means what it says, if you purchased something for $500 5 years ago, chances are it has less of a value now. So with ACV coverage you would only get what the current value of the item is worth. It is best to get “replacement cost coverage; this on the other hand, will pay for what it actually costs to replace the items you lost.

Additional Benefits

Here are some additional benefits that you wouldn’t normally think of:

Lets say your home becomes unlivable due to a fire, burst pipes or for any other reason that is covered by your policy, renter's insurance will cover your "additional living expenses." This means your insurance will cover the cost to live somewhere else temporarily while the problem is being fixed.

Here’s another benefit, if you own a waterbed, a waterbed liability provision is standard in most policies, according to Mike Binns, personal lines underwriting manager for Farmers Insurance Co. If your waterbed bursts and the water ends up in the apartment below yours, renter's insurance will cover the damage.

My favorite benefit is the liability coverage. I guess this is my favorite because it is so likely to happen to anyone. If someone in your apartment slips and falls, you're covered for any costs, up to your liability limit. And if this person should choose to sue you, you're covered for what they win in a court judgment up to your policy's limit, along with legal expenses, too, because, according to Binns, your insurance company agrees to defend you under your liability protection provision. Copyright insure.com. All rights reserved.

Well, hopefully I have convinced you by now that renters insurance should be something you put on the top of your priorities to get. And best of all, its cheap to obtain. Were talking FREE in some instances, if you don’t know what I'm talking about, go and look at last weeks article.

I’ll see you next week!

Dedicated to your financial success!

Kenton Becker
kentonb@empireoptions.com
Managing Partner / Land Home Financial Specialist
License # 510-LO-36929
http://www.empireoptions.com/