If you rent your apartment or home, it may be time to consider getting renters insurance. Although many tenants believe their landlord is responsible for damages to their personal property (e.g., a pipe bursts and destroys your electronics), this is often not the case. Fortunately, a renters insurance policy can protect you from expenses if your property is damaged or destroyed.

Contact Tennessee Auto Insurance Agency in Smyrna, Tennessee, to learn more about our renters insurance coverage and to speak to an insurance agent today.

What Does Renters Insurance Cover?

Here are some commonly included benefits in a renters insurance policy:

·       Living expenses coverage—If property damage forces you to vacate your rented property temporarily, this can pay for additional living costs (e.g., meals, hotel stays).

·       Personal possessions coverage—If your property (e.g., clothes, furniture, electronics) is destroyed due to a covered peril, this can pay for repairs or replacements.

·       Personal liability coverage—If a third party (e.g., guest) is injured on your property, this coverage can pay for legal fees, medical expenses and lost wages if their bodily injury negatively impacts their ability to do their job.

How Does Renters Insurance Work?

In exchange for your premiums, your insurance company is legally bound to pay for covered losses up to your policy limits. In some instances, you may have to pay a deductible, which is an out-of-pocket expense, before your insurance coverage kicks in.

When it comes to repairing or replacing damaged property, renters can often choose between two types of coverage that will determine how they are reimbursed, these include:

·       Replacement cost coverage may pay to replace lost, damaged or stolen items without factoring in depreciation.

·       Actual cash value coverage may reimburse you for the estimated value of your property when it was destroyed, factoring in depreciation.

If you own certain high-value items (e.g., fine arts, jewelry), your renters insurance coverage may not be sufficient to repair or replace these items. Speak to your insurance agent to determine if your renters insurance covers your high-value possessions.

How Much Renters Insurance Do I Need?

Although renters insurance is not federally mandated, some landlords will require it as a condition of your lease agreement. Even when it is not required, however, you may find the benefits outweigh the costs.

When deciding how much renters insurance to purchase, it may be beneficial to consider a worst-case scenario. Think about how much it would cost to replace your property if all of your possessions were destroyed. The amount of liability coverage you choose to purchase will vary with your risk tolerance. You may choose to increase your liability coverage limits to protect yourself from low-probability, high-risk events (e.g., someone dies as a result of negligence on your property).

How Often Should I Shop for Renters Insurance?

There is no hard-and-fast rule for how often you should shop for new renters insurance. However, many renters don’t realize they could save money by searching for a new policy. If you have recently moved to a lower-crime area or if your renters insurance premiums have increased dramatically, it may be time to search for a new policy.

Call Tennessee Auto Insurance Agency to learn about potential discounts that could be available with our renters insurance.

Getting Renters Insurance

For over 20 years, we’ve been helping our clients find the right insurance coverage. Contact Tennessee Auto Insurance Agency for more a renters insurance quote today.