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Renters’ Insurance Options: A Quick Guide

renters' insurance options: a quick guide

You’ve just moved into your new rental home or apartment. You know that your landlord carries insurance. Now you’re wondering if you need renters’ insurance too, and if you do, what are your renters’ insurance options? Renters’ Insurance covers your personal belongings in case of damage or theft. If your apartment building catches on fire, for example, your landlord is protected and can rebuild, but without renters’ insurance, you have to pay out of pocket to replace your possessions. 

Alliance Insurance of the Rockies is a licensed insurance broker serving Colorado Springs and Woodland Park. We value transparency in our client interactions and want you to feel empowered to choose the right coverage for you. Our mission is to protect individuals from significant out-of-pocket expenses. We work with several insurance providers to find the best value for you.

Who Needs Renters’ Insurance?

If you couldn’t comfortably afford to replace all of your household possessions, then you probably need renters’ insurance. Most renters’ insurance policies start at $10,000 in coverage for personal property and can be customized from there. The average renters’ insurance policy in Colorado costs about $13 a month, a small price to pay for peace of mind. You can also get a discounted rate on renters’ insurance from most providers by bundling it with auto.

Types of Renters’ Insurance

A typical policy includes three main types of renters’ insurance: personal property, liability, and additional living expenses. Keep reading to learn how each of these insurance types protects you:

Personal Property

Personal property covers all of your possessions within the rental property. If your possessions are lost or damaged due to fire, hail, theft, vandalism, or other named perils, the insurance provider will pay you either the actual cost or the replacement cost of your belongings. Replacement cost means they will give you enough money to replace everything brand new, whereas actual cost means that they will pay you what your possessions were worth at the time of loss. Replacement cost is usually the better option but can be more expensive.

The interior of an apartment. Couches, a coffee table, and a staircase leading up to a loft are visible.

Liability

Liability coverage protects you if someone sues you for damages or injuries incurred in your apartment or rental home, including injuries inflicted by you or your pets. This type of coverage usually covers legal fees and court-ordered payments up to the policy amount.

Additional Living Expenses

Insurance for additional living expenses covers hotel bills, restaurant meals, and other necessary expenses if your primary residence becomes uninhabitable. This coverage only applies, however, if your home was affected by a peril named in your policy.

What Does Renters’ Insurance Not Cover?

We’ve mentioned named perils, which are disasters covered in your policy. However, a few “perils” are not automatically covered in most renters’ policies. Common events that may require additional coverage are floods, earthquakes, sewer back-ups, and other “acts of God.” 

Renters’ insurance also typically does not cover valuable personal property, such as jewelry, musical instruments, and some electronics. However, most providers will offer a valuable personal property policy as an add-on.

How to Get Renters’ Insurance

Your first step in buying renters’ insurance is to inventory your possessions. Many renters will create a spreadsheet they can print and store in multiple locations or save to the cloud. Include a list of your belongings with an estimated value. Next, take pictures in case you need to make a claim.

Once you’ve added up the estimated value of your possessions, you’ll know the amount of coverage you need. Before contacting a broker or insurance provider, decide how much you can spend on monthly coverage. Now you’re ready to contact a broker or insurance provider. Many providers can help you set up your coverage online or over the phone.

An insurance professional can help you find adequate coverage within your budget. Usually, you can decrease your monthly premium by raising your deductible, but this means you’ll owe more out-of-pocket in case of a claim. 

Get Renters’ Insurance with Alliance Insurance of the Rockies

As your Colorado insurance expert, Alliance Insurance of the Rockies is committed to finding the best coverage for your needs. Whether you are a college student looking to insure your belongings or a homeowner shopping for a better policy, we’d love to walk you through the process. We know shopping for insurance can be overwhelming, so contact us with your questions or to get a free renters’ insurance quote.

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