Leasing a home or apartment offers a low-maintenance lifestyle, but there are still risks. Could you afford to replace everything you own after a fire, burglary, or other loss event? Renters insurance helps protect the things you own, whether they are at work, at home, in your suitcase, or perhaps even the center console of your car. It gives you peace of mind that your belongings are covered against a wide range of damage and loss, potentially saving you tens of thousands of dollars in replacement costs. At Binford Insurance, we help Indianapolis area renters find comprehensive renters insurance coverage at affordable, competitive prices, so you can protect yourself and the things you own without breaking the bank.
Why Renters Need Insurance
For many renters, insurance is a requirement. Landlords often require proof of insurance before entering into a lease agreement. If your landlord does not require insurance, however, chances are you still need coverage for personal property, displacement, and liability damages. If a damaging event results in the loss of your personal belongings, your landlord’s policy is unlikely to cover repair or replacement of your things. Likewise, your landlord’s coverage will not pay for temporary housing if your apartment or rental home suddenly becomes uninhabitable and you need somewhere to stay. Perhaps most importantly, your landlord’s coverage will not cover third-party injuries or property damages for which you or a member of your household is responsible. Instead, you need a renters insurance policy that can help minimize your out-of-pocket costs when life doesn’t go as planned.
Your Renters Policy
Renters insurance policies contain multiple coverage types. Together, these coverages help safeguard your income and assets against varied types of losses, from personal property damages to lawsuits. Your coverage may include protection for:
How much would it cost to replace everything you own and start over again? It might not seem likely, but it is always a possibility. Whether you have a house full of items or a small studio apartment, chances are your belongings are worth more than you might think. Personal property insurance helps cover damages and loss caused by covered events. Although these can vary depending on the type of policy you have, your insurance is likely to provide coverage for things like fire, theft, wind, and more. Furthermore, the coverage follows your belongings virtually anywhere you take them. Whether your holiday gifts are stolen from the trunk of your car in a mall parking lot or your laptop goes missing from your office at work, renters insurance can help cover your losses up to the limits of your coverage.
We recommend taking inventory of the things you own and updating it regularly to assure you continually have enough coverage. In some cases, the terms of the coverage limit the available coverage for certain types of high-value items, such as furs and fine jewelry. Talk with your agent about options to cover these items more extensively with policy add-ons.
Renters should also understand the terms of their policies, including the difference between actual cash value and replacement value coverages. If your belongings are covered for their actual cash value (ACV), you may only receive compensation for their depreciated value (minus your deductible) in the event of a loss. This could amount to a fraction of what you paid for your belongings and the cost to replace them with new items. Alternatively, you could request replacement value coverage, which reimburses you for the full cost of replacing your items. Although claims against replacement coverage are still subject to your deductible, they can leave you with minimal out-of-pocket costs compared to an ACV claim. Talk to your agent to learn more about the types of personal property coverage and which is right for you.
If an ice-covered tree falls through the roof of your apartment next winter, you may need to find a place to stay while it is repaired. With renters insurance displacement coverage, you are covered for temporary relocation due to covered events. This coverage can pay for extra household living expenses that are necessary as a result of your displacement.
If you are sued for damaging someone’s property or for causing an injury, renter’s liability insurance can help cover the cost of defending yourself. It can also help pay for out-of-court settlements or judgments if you lose your case. Generally, liability insurance covers incidents that occur on your premises, as well as those that occur away from home (with certain exceptions). Furthermore, your liability protection can extend to the other members of your household, whether your dog bites a guest or your child accidentally injures another child on the playground at school.
We recommend working with your independent agent here at Binford Insurance when choosing your liability limits. If you under-insure yourself, you increase the risk of facing major losses if you are sued. Considering injury-related lawsuits can sometimes total hundreds of thousands of dollars, selecting high liability limits could help protect your future income, assets, and your family’s financial security for years to come.
Maximizing Your Renters Coverage Benefits
As a renter, you cannot afford to go without insurance protection. As an independent agency, Binford Insurance can shop and compare policies from multiple Indiana insurers to find quality coverage at a competitive rate. We can also help you find ways to further lower your insurance costs, whether by raising your deductible, installing a monitored security system in your apartment, or purchasing multiple coverage lines from the same insurer.
If you are currently leasing your Indiana home, let the team here at Binford Insurance help you protect your household against loss. Contact our office to find out more or to request your free quote. We look forward to serving you soon.