Adulting 101 Renters Insurance

My apartments were never this nice!

​Oh the things “millennials” have brought to the world. My favorite is that they now call growing up… adulting! Back in my day we just called them life lessons and we figured things out. I guess I am old at this point. So, adulting lesson for the day involves one of my favorite topics Renters Insurance.
I get a lot of young adults who will go to rent their first apartment and they find out the landlord requires they buy renters insurance before they get the keys. This leads to a panicked call where they just want to pay the minimum to make the landlord is happy. They aren’t actually interested in buying the policy, they just do it because they have to.
What should you know about your new renters insurance policy? First all policies are not created equal. You can find cheap renters policies out there and guess what? Those cheap policies aren’t going to do much if you actually need to make a claim. You might as well spend a few extra dollars and but a policy that will actually protect you and your stuff. 
The first coverage you should care about is coverage for your belongings. Insurance companies call this “personal property”. Basically what that means is anything you can pack up and move into your apartment is covered for fire, theft, water damage, smoke damage and whatever other claims the policy allows for.  Buy enough coverage to actually replace your stuff. I’m sure you have clothing, some electronics, furniture and some appliances.  It may not seem like it is very valuable, but if you were to try to go out and replace your stuff it adds up quickly. 
There is another part to your property coverage that is vital to know. Some companies offer Actual Cash Value or you can also add Replacement Cost Coverage. Here’s the difference ACV gives you a depreciated value of your belongings. For example if you have an old pair of sneakers they will give you 50 cents to pay for your loss. Replacement Cost gives you new stuff for your old stuff. Same old sneakers are stolen now you can get money to buy yourself a new pair of shoes. The payouts are vastly different and for the extra few dollars buy the Replacement Coverage.
The next part of your renters policy is your Liability coverage. That covers if someone comes over to hang out and now slips on your freshly moped floor. They throw their back out and can’t go to work for a few weeks. This will protect you from being sued. Most landlords required 100 thousand dollars minimum.
Med Pay is also included in your policy. That covers minor injuries, stitches or casts if a visitor gets injured at your place.
Loss of Use. This is a great coverage that comes with your policy. It means that if you have to move out because there is a fire or a toilet overflows. You can get some money to stay in a hotel for a few days or rent a new place while your old place is getting fixed.
You will also be able to select your deductible. Basically, your deductible is what you are responsible for before the insurance company pays out anything. 
So, that’s your adulting lesson for the day. You may not have wanted to buy renters insurance but it is a great policy to have. Just pay the couple of extra dollars to add the replacement cost coverage onto your policy. You can get a basic policy for between 10-15 dollars. That’s less than buying a large pizza once a month! Call me today to get your renters insurance started. 951-395-0754