An Introduction to Renter’s Insurance
Financial Education Program on Insurance
Presented by INSERT NAME:
Nationwide and the Nationwide frame are federally registered service marks of Nationwide Mutual Insurance Company.
An Introduction to Renter’s Insurance
An Introduction to Renter’s Insurance
RISK: WHAT IS IT?
Risk = the possibility of financial loss
An Introduction to Renter’s Insurance
Why is risk important for insurance?
Risk is what makes you decide whether or not
you need insurance.
Risk is what insurance companies measure when
determining whether to offer you insurance and
how much it will cost.
An Introduction to Renter’s Insurance
Risk Factors for Renters Insurance
Type of home (apartment,
town home, high-rise)
Square footage
Number of rooms
Floor level (if in high-rise)
Address (city, state, county)
Pets?
Proximity to fire station and
fire hydrant
Business being conducted on
premises?
Credit rating of policyholder
Personal property (including
furniture, electronics, high value
items, etc.)
Special safety features (security,
alarms, sprinklers)
Prior insurance history (claims
filed, etc.)
Construction type (brick, frame,
etc.)
Roof type (shingle, tile, metal, flat,
etc)
**Amount of coverage required**
An Introduction to Renter’s Insurance
What is insurance?
Insurance is a legal contract that
transfers risk from a policyholder to
an insurance provider.
An Introduction to Renter’s Insurance
Why do you need renter’s
insurance?
An Introduction to Renter’s Insurance
The average renter owns over $20,000 in
personal property. In the event that
something happens to your property, who
will have to replace it?
An Introduction to Renter’s Insurance
You.
An Introduction to Renter’s Insurance
The Components of Basic
Renter’s Insurance
An Introduction to Renter’s Insurance
What does basic renter’s insurance
cover?
Most renter’s insurance contracts
normally include coverage for the
following items, but this can vary by
company and state. Check your policy to
be sure what is and what is not covered.
An Introduction to Renter’s Insurance
What does basic renter’s insurance
cover?
• Personal Property – Coverage for personal
items (clothing, furniture, appliances,
computers, etc.).
• Loss of Use – Coverage for when an insured
has to move out of the home while repairs are
made as a result of damage caused by a
covered loss.
An Introduction to Renter’s Insurance
Protecting Your Personal
Property:
Two Options for
Renter’s Insurance
An Introduction to Renter’s Insurance
# 1: Actual Cash Value
Definition: The value of the property lost or damaged
at the time of the loss. This method of valuation
takes into consideration depreciation based on such
factors as:
• Age of the item
• Market value
• Condition of the property at the time of loss
or damage.
An Introduction to Renter’s Insurance
#2: Replacement Cost
Definition: The cost of replacing damaged or destroyed
property without deduction for depreciation in the
value of the property.
An Introduction to Renter’s Insurance
What else does basic renter’s
insurance cover?
• Liability Insurance – Pays for damages the
insured is legally obligated to pay due to bodily
injury or property damage.
• Medical Payments – Pays for medical and/or
funeral expenses incurred by a person on or off
the insured’s property.
An Introduction to Renter’s Insurance
Perils Covered by Renters Insurance
• Fire and lightning
• Windstorm and hail
• Explosion
• Riot and civil commotion
• Impact from aircraft
• Impact from vehicles
• Smoke
• Vandalism and malicious
mischief
• Theft
• Falling objects
• Weight of ice and snow
• Glass breakage
• Accidental overflow of water
from plumbing
• Accidental electrical damage
to appliances (caused by
power surge)
*Depending on where you live, hurricanes or windstorms may or may not be covered. Check with an
insurance agent to determine if an extra policy is needed to cover these perils.
An Introduction to Renter’s Insurance
Perils NOT Covered by a Standard
Renters Insurance Policy
(You may need to purchase a separate policy!!)
• Flood
• Earthquake
• Act of War
• Nuclear Detonation
*Depending on where you live, hurricanes or windstorms may or may not be
covered. Check with an insurance agent to determine if an extra policy is
needed to cover these perils.
An Introduction to Renter’s Insurance
ADDITIONAL COVERAGES*
•
•
•
•
•
Jewelry, watches, furs
Guns
Tools
Cameras, camcorders
Silver, gold, pewter
• Money, coins, securities,
deeds
• Watercraft, trailers,
equipment, motors
• Computers
• Business property
* Coverage for these items is already included in the renters
insurance policy up to certain limits. For an additional
premium, you can increase the limits of these coverages to
meet your needs.
An Introduction to Renter’s Insurance
LIABILITY COVERAGE
• Protects you, your family, and anyone under age
21 in your care
• Protects you against legal claims you are legally
obligated to pay for causing bodily injury,
sickness, disease or death of others
• Pays the cost of defending a claim against you
• Covers damage to the property of others
An Introduction to Renter’s Insurance
GUEST MEDICAL PAYMENTS
• Pays for necessary medical and funeral
expenses*
• Covers first aid expenses of others*
*Limited to certain terms, limitations, and exclusions. Check with an insurance agent to find
out more about this coverage.
An Introduction to Renter’s Insurance
STEPS TO PROTECTING YOUR
PROPERTY
An Introduction to Renter’s Insurance
1) Take an
inventory
6) Select a
provider and
apply
2) Compare
quotes
Next Steps
5) Check for
discounts
3) Select your
coverage
4) Ask about
disaster coverage
in your area
An Introduction to Renter’s Insurance
Practice Shopping for a Policy
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