Thefts, Floods, Fires….
OH MY!
A primer on renter’s
insurance
Off-Campus Student Services
offcampus@ups.edu
879-3374
COMMON MYTHS
1. My landlord’s insurance covers me.
This is a common misconception among renters, and it is
untrue in almost all situations. Your landlord carries
insurance that will cover his loss in a situation where the
building is destroyed or damaged in some way. Your
landlord is covered in case someone (including a tenant) is
injured on the property, though not in your apartment.
COMMON MYTHS
2. Renters insurance is expensive.
The truth is that an average renter can get complete
coverage for a couple hundred dollars or less a year,
depending on where she lives.
COMMON MYTHS
3. My roommate has it, so I don’t need it.
The truth is that your roommate’s insurance will cover their
possessions, but it will not cover yours unless you are listed
on their policy. It is possible (and even encouraged) for
roommates to get a single policy to cover all inhabitants
and possessions in the apartment.
Things To Consider
1. Replacement Cost vs. Actual Cost
A basic policy usually provides for the actual cash value of your
belongings after depreciation. If you have expensive electronics or
other pricey items, you might want to consider replacement cost
coverage instead. In this case, you would be reimbursed for the
complete current cost of buying the new item. Of course,
replacement cost coverage is more expensive, but may be worth it
in many cases.
Things To Consider
2. Deductibles
Like any insurance policy, renters insurance will have deductibles.
This is the amount of loss you will have to cover out of pocket
before receiving any money from the insurance company. The
higher the deductible, the lower the premium, but you must
balance your ability to cover the deductible with the monthly
premium savings.
Things To Consider
3. Endorsements
Like homeowners insurance, renters insurance usually won’t cover
you for “acts of God” such as floods and earthquakes. You can get
endorsements for these however, and you should seriously consider
them. Endorsements can also be used to extend the amount of
coverage on the policy or the incidents which are covered.
Things To Consider
4. Loss of Use Coverage
If something happens, like a fire for instance, that means you can’t
live in your apartment or rental home for a period of time, you may
have to live in a hotel and eat meals out. Your renters insurance
can and should cover such “loss of use” just as your auto insurance
covers a rental car while yours is in the shop.
Things To Consider
5. Liability
Your basic renters insurance will include liability coverage should
someone be injured in your rental unit. As with car insurance,
there is a per-incident limit on this coverage, and you should make
sure this is high enough. Increasing liability coverage will often not
increase premiums much at all.
Things To Consider
6. Floaters for Special Items
If you have such items as valuable jewelry, antiques, furs, or other
big-ticket items, they often will not be completely covered under a
basic policy. To fully cover these items from loss, you will want
what is called a floater. These are essentially separate policies
covering only these items and can be very inexpensive relative to
the replacement cost of the items.
Things To Consider
7. Appraisals
If you do have such things as antiques, jewelry, furs, or other
items not easily replaced but highly valuable, you may need to
have an insurance appraisal done so you can have the coverage
you need as well as the paperwork you will need to prove its worth.
These appraisals, as well as a complete inventory of the items in
your rental unit, should be kept somewhere outside your
apartment or at least in a fireproof safe. Often, you will be able to
place copies of such paperwork with your insurance agent.
Things To Consider
8. Inventory
Inventory the possessions you would most want or need replaced
were they to be lost as well as any big-ticket items for which you
may need special coverage. This could include your stereo and
computer equipment, antiques, jewelry, appliances, and furniture.
Gather details of make, model, serial number, age and costs (both
purchase and current replacement) and put them in a spreadsheet
and print it or write them down. Remember to put this list in a
fireproof safe or somewhere outside of your rental unit. Also, take
photos of as many items as possible for identification purposes and
keep these pictures with your list.
How Do I Find a Provider?
1. Parents/Guardians
The first place you may want to look is to your parents or
guardians. You might already be covered under their
homeowner’s policy depending on your age and living
situation. However, it is likely that any coverage under your
parents’ policy is limited and may not cover all of your
belongings or what is important to you.
How Do I Find a Provider?
2. Current Auto Insurance Policy
The second place you should look is to your current auto
insurance policy. If you already have a policy that covers
your vehicle, chances are that the same company offers
homeowners and renters insurances as well. This could save
you money because some companies offer discounts when
you have two or more policies with them. Plus, it condenses
your bills into one.
How Do I Find a Provider?
3. Shop Around
Even if your current auto insurance provider offers renters
insurance, you should still shop around. Other companies
may have better rates or policies. Do your research by calling
different insurance agencies or looking them up online.
Prevent Theft
1. Crime Free Housing Program
The Tacoma Crime Free Housing Program, developed by the
Tacoma Police, Human Rights, Fire, and Public Works
Departments, is designed to help landlords and tenants
develop partnerships in a neighborhood environment and foster
a safe living environment free of illegal activity. Encourage
your landlord to get certified in the CFHP or find out if your
rental unit is already certified by looking at this website….
https://www.cityoftacoma.org/cms/one.aspx?objectId=5693
2. Lock Your Doors
3. Report Anything Suspicious
Tacoma Police Non-Emergency: (253) 798-4721
UPS Campus Security Services: (253) 879-3311