7 Useful Things To Know About Renter's Insurance

/ Sagaz Insurance Center/

Are you a tenant in California?  If so, you might want to look into Renter's Insurance, a policy designed for the protection of tenants and their property.  I have broken down the renter's insurance policy into 7 main points: 

1. In its basic form all renter’s insurance in California includes:

i. Personal Property,

ii. Loss of Use,

iii. Personal Liability,

iv. Medical Expenses.

Only the first one has to do with protecting your property, the other three protect your livelihood and standard of living.

Personal Property: covers your property if it's damaged or stolen at home and outside of the home. The limits range from $5,000-$100,000.

2. There are sub-limits to how much is covered in personal property: $1,000 max for musical instruments, and $2,500 for computers.

3. For more expensive articles you can independently add them and the insurance company will appraise it for the value. This is called “scheduling.” If you own a $6,000 Gibson guitar, by scheduling the guitar you can raise the amount covered.

  • When you purchase the policy you can choose either “replacement cost” or “actual cash value,” and this will determine how the insurance company reimburses you when your property gets stolen or damaged. Replacement cost is recommended, the difference in premium is $1 per $1,000 covered.

  • Replacement cost replaces lost or damaged property with a new or one of equivalent quality, while actual cash value will give you the current value of the item no matter the original cost.

4. A fun fact: Your property is covered against volcano eruptions, but not nuclear weapons.

Personal Liability and Medical Payments

5.Personal liability and medical payments covers for damages caused by you to others both at home and outside of the home.

6.Personal Liability protects claims made against you for damages because of bodily injury or property damage. It even provides an attorney.

  • Medical Payments will cover medical expenses resulting from an accident that caused bodily injury. Does not cover medical expenses for you or residents

  • There are limitations, such as criminal acts that are not covered. Speak with your insurance rep for more information.

Loss of Use

7. If your apartment becomes uninhabitable due to a fire or other covered peril, the loss of use portion will cover any reasonable expenses, such as hotel expenses and take-out food, so that you can maintain your standard of living.

Surprisingly enough, Renter's Insurance is not commonly purchased by tenants, however with low premiums this type of policy is extremely affordable and worth the peace of mind.  For a free quote, call us at 855-704-7740.