It’s hard to beat the flexibility and low-maintenance that comes with renting your home. If your household is one of the one-third of U.S. households that are currently leasing, your insurance needs are drastically different than a homeowner’s. Your landlord’s insurance takes care of the physical structure of your apartment or house, but it is up to you to purchase insurance that protects your money and your belongings. With a renters insurance policy from AFI Insurance, you will get affordable coverage designed to minimize your expenses after a covered loss.
What is Renters Insurance?
Renters insurance is a policy tailored to the needs of people who lease their homes instead of buy them. Some landlords require it, but we recommend purchasing it even if yours does not. Renters policies are typically sold as a stand-alone coverage, which you can shop and compare through your local independent agent, Frank Isadore. Although average monthly premiums are less than the cost of going out to dinner, renters insurance can actually save you thousands of dollars in the event of a loss or financial liability, such as a fire or lawsuit.
In general, your standard renter’s insurance policy will protect your personal belongings, your financial responsibility, and your costs to relocate after a loss event. Although the types of perils and hazards covered by renters policies can vary, it is not uncommon to have coverage for things like fire, smoke, lightening, theft, and vandalism. At AFI Insurance, we can help you better understand the differences in your coverage options and answer any questions you may have about your policy long after you purchase it.
Types of Renters Insurance Coverage
Renters insurance policies outline various types of coverage, all of which work together to provide you with complete coverage solutions against financial disaster. Some of the most common types of renters insurance coverage include:
If a covered event leaves your apartment uninhabitable, you might need to find temporary shelter until your apartment is repaired or you end your lease and find a new place to live. Relocation coverage helps pay for things like hotel costs, meals, laundry charges, and more.
You might not think liability coverage has much to do with renting, but this important protection does a lot more to safeguard your finances than you might think. When someone is accidentally injured inside your home or as a result of your negligence, you could be held financially responsible. With liability insurance, you are protected up to the limits in your policy if you are sued for bodily injury or property damages. Your policy can cover your legal defense fees and court costs, as well as any judgments brought against you.
In most cases, liability insurance extends to the members of your household – including your pets. It covers incidents occurring at home as well as those away from home, with certain exceptions for things like car accidents, which are usually covered under your auto insurance policy instead.
Personal Belongings Coverage
How much does it cost a person to start over with nothing but the clothes on their back? It’s a scenario many people have faced. Without insurance, it could cost you tens of thousands of dollars to replace your furnishings, clothing, apparel, electronics, and other possessions you once owned. With renters insurance, your personal belongings can be covered up to the limits in your policy against a wide range of loss events, including:
- Theft and vandalism
- Fire and smoke
- Wind damage
- Water discharge
- And more
In most cases, personal belongings coverage extends to items outside your home. For example, if your luggage is lost while you are traveling abroad or your laptop is stolen out of your car, chances are your renters insurance covers these ‘off-premises’ events.
Selecting Your Coverage
Renters have the opportunity to choose their own personal belongings coverage limits. Instead of simply estimating how much protection you may need, we recommend taking a home inventory of your possessions instead. There are several mobile apps that can help store your inventory, or you can keep safely stored away from your home on paper. Your inventory should include a list of everything you own sorted by category. Certain high-value items, such as jewelry and furs, may be subject to smaller limits known as ‘special coverage’ caps. If the value of your items exceeds these ‘special coverage’ limits, be sure to ask about how you can schedule additional protection for your valuables.
Personal Property Claims
When you file a claim against your personal property coverage, the loss will probably be subject to your deductible. You can choose a low deductible to minimize your out-of-pocket costs, or you can select a higher deductible, which may help lower your premiums.
The amount you receive for your claim will depend on the valuation of your belongings. Standard coverage only compensates you for the actual cash value of your items accounting for depreciation. We recommend instead purchase replacement value protection, which will help pay the price for replacing your items with new ones.
Affordable Renters Insurance in Rolling Meadows
Renters insurance is usually quite affordable for the average renter. At AFI Insurance, we know how to find budget-friendly policies from leading Illinois renters insurers without sacrificing the quality of your coverage. By shopping around and comparing discounts for things like home security systems or combining your renters and auto coverage, we can help you capitalize on your savings and keep more of your hard-earned money each month.
For more information about Illinois renters insurance or to request your free quote, contact our office today.