You need renters insurance when you have something to loose. That something could be more than your stuff. It could be the reasonable rent you have. If there were a fire, and you had to leave for another apartment, you might have to pay more rent. LOSS OF USE is a coverage built in to the policy. If you have to leave your 2 bedroom, second floor apartment where you pay $500 a month because of a fire, you can move into a similar apartment and if that similar apartment cost more, LOSS OF USE will pay for the extra (above $500) rent. It will not pay for you to move into a four bedroom penthouse apartment. That's not similar.
If a friend or someone else visits, goes to the bathroom and slips on the floor they could get injured... badly. A renters policy includes two important coverages: MEDICAL PAYMENTS and BODILY INJURY LIABILITY. MEDICAL PAYMENTS would pay hospital or doctor expenses necessary to treat your friend. The limit is usually $1,000 but you can buy more and it's cheap. If your friend gets a lawyer and sues you, BODILY INJURY LIABILIYT will pay for an attorney to defend you AND pay the damages if you lose. The limits generally start at $100,000, but check the price for higher limits as it also is cheap.
Finally, there is your stuff. Maybe it's used and worn and you don't think it's worth a lot. But if you had to go out and buy EVERYTHING all over again, it would be expensive. You can buy insurance that will replace your old stuff with new stuff. You just have to make sure you have REPLACEMENT COST COVERAGE.
REMEMBER: Insurance does not cover everything for every imaginable kind of claim. There are limits and exclusions. They are generally the same from company to company. Find an agent you can talk to and ask questions.
Good Luck
Kevin P. Foley, CPA, CPCU
PFT&K Insurance Brokers
877-414-2031 kpfoley@kpfoley.com
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If a friend or someone else visits, goes to the bathroom and slips on the floor they could get injured... badly. A renters policy includes two important coverages: MEDICAL PAYMENTS and BODILY INJURY LIABILITY. MEDICAL PAYMENTS would pay hospital or doctor expenses necessary to treat your friend. The limit is usually $1,000 but you can buy more and it's cheap. If your friend gets a lawyer and sues you, BODILY INJURY LIABILIYT will pay for an attorney to defend you AND pay the damages if you lose. The limits generally start at $100,000, but check the price for higher limits as it also is cheap.
Finally, there is your stuff. Maybe it's used and worn and you don't think it's worth a lot. But if you had to go out and buy EVERYTHING all over again, it would be expensive. You can buy insurance that will replace your old stuff with new stuff. You just have to make sure you have REPLACEMENT COST COVERAGE.
REMEMBER: Insurance does not cover everything for every imaginable kind of claim. There are limits and exclusions. They are generally the same from company to company. Find an agent you can talk to and ask questions.
Good Luck
Kevin P. Foley, CPA, CPCU
PFT&K Insurance Brokers
877-414-2031
kpfoley@kpfoley.com