One of the most basic sales techniques used by every insurance agent is asking for a cross sell. If someone wants an automobile quote, the agent will ask about their home. If an individual doesn’t own a home, the agent will suggest renters insurance. Renters insurance? The very mention of it immediately leads to “what is renters insurance”¬†and “what does it cover?”¬†Hopefully this article will shed a little light on those two questions. Renters Insurance is product designed specifically for individuals who do not own the home or apartment they reside in. The policy provides a predetermined amount of personal property coverage (set by the policyholder), a coverage limit for liability protection, a small amount of medical coverage and a set deductible limit chosen by the named insured. What kind of things does a renters insurance policy cover? Renters insurance covers the replacement of the policy holders personal property as a result of a covered peril and any extra living expense should they be asked to leave a location. For example a tornado damages a building or an upstairs neighbor leaves their water running and your unit is damaged. Renters insurance would cover those temporary housing expenses at hotel. Does renters insurance cover my roommates stuff? No. Renters and homeowners insurance only covers the named insured and all residents of the household who are directly related. Any non related residents will need to get their own policy to cover their personal property at the address. Would my laptop or computer be covered? Yes. Renters Insurance covers your personal electronics (laptops, phones, tablets, TV’s, computers) up to the amount of property coverage on the policy if it is lost or damaged as a result of one of the covered perils. However, if the item is simply lost or damaged as a result of being dropped, that wouldn’t be deemed a covered event. Am I covered if something I own gets stolen outside of my home or apartment? Yes. Renters Insurance covers “your stuff” away from the residence. If something is stolen, it would be covered because “theft” is a covered peril. Therefore, if your bike is stolen on campus or a laptop is stolen out of your car or hotel room, the item would be covered up to the policy limits. Of course, your deductible applies and you will need to file a police report. What if my dog bites someone, would my liability coverage cover that? Yes if the dog was properly underwritten at the time the policy was issued. It’s very important an agent develops all dogs to discover if they have a bite history or if the breed is listed on an ineligible list. What types of things aren’t covered on a renters policy? Typical day to day things like the power, water or heat going out at your home or apartment. If you would like to learn more about Renters Insurance or would like a quote you can contact me us
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