Homeowners insurance protects a house and the things inside it, but how do you protect your personal belongings when you do not own the place you call home? Renter’s insurance is a coverage solution designed specifically for individuals who lease their space, whether an apartment, townhome, duplex, or house. Since you do not need coverage for the structure of your home, it instead safeguards everything else, from your personal property to your risk of liability. At Great Lakes Insurance, we help Cloquet & Duluth area renters find comprehensive coverage solutions with a broad range of protections uniquely crafted with your needs in mind.
Who Needs Renters Insurance and Why?
Renters insurance is generally recommended for all renters, whether you are entering a long-term lease or planning to stay in an apartment temporarily while your building your dream home. Often, landlords require proof of renters insurance before handing you the keys to your place, although this is not always the case. Either way, this important coverage could save you tens of thousands of dollars or more in potential damages, whether due to a building fire or a lawsuit.
There are many scenarios in which renters insurance can protect you against loss. For example, did you know you can be sued for third-party injuries when a guest is injured by a hot stove or even a dog bite in your apartment? Likewise, you could be responsible for judgments and settlements for third-party injuries and property damages due to non-collision accidents away from home. Then there are the risks of personal property loss and displacement due to fire, smoke, theft, vandalism, lightning, hail, wind, explosion, and other covered events. Could you afford to replace everything you own and find emergency shelter if you lost everything?
At Great Lakes Insurance, we can help equip you with a policy that safeguards your finances against unexpected circumstances that lead to a loss. We can also help you better understand the components of your policy, including your deductibles, endorsement options, scheduled coverage options, and the different types of coverage available to you. In addition, we can explain coverage exclusions, such as for flooding, and provide solutions for mitigating those risks.
Types of Renters Coverage
A typical Minnesota renters insurance policy contains multiple coverage types. Each section of your policy outlines an important type of protection that could save you thousands of dollars in the event of a claim. Your coverage may include:
Personal Property Insurance
Have you considered how much it would cost to purchase new furniture, find new clothing, buy new electronics, and replace your other belongings after a total loss? Even a partial loss due to theft or smoke damage can be financially devastating. The personal property protection in your renter’s policy helps compensate you for covered losses minus the cost of your deductible.
To assure you are adequately covered, we recommend listing the items you own by category. Add up the estimated cost of replacing these items as a whole, as well as by category. This will help you determine how much total coverage you need, as well as how much additional scheduled coverage you may need for certain high-value items, such as fine jewelry and firearms.
Take note of how your insurance policy covers your belongings. Standard coverage is often for actual cash value replacement (ACV), which only compensates you for the depreciated value of your items. This could leave you with a big financial hole to fill if you replace your belongings with brand new items. Instead, talk to your agent about replacement value coverage, which covers your damaged belongings for their full replacement cost.
If you are forced out of your apartment or rental house due to a covered event, such as a fire, it could take some time to find a new permanent residence. Displacement coverage can help pay for your temporary living expenses, such as hotel fees, while you search for a new place to call home or while your damaged space is remediated and repaired.
Nothing can sink your finances as fast as a lawsuit. Imagine finding out that your child accidentally injured another child in his kindergarten class, and now the parents are suing you for medical bills and other damages. Could you afford the legal fees and judgments brought against you? What about third-party injuries sustained by guests in your home or due to the startling reaction of your pet? Renters liability insurance provides broad protection for a wide range of potential loss events, whether they occur in your home or they are caused by other non-collision accidents for which you or a household member is at-fault.
Get a Renters Insurance Quote
If you are renting a space in the greater Cloquet & Duluth area, it’s time to talk to an agent about renters insurance. No matter how much you own or how small your space may be, renters coverage can still offer significant financial value. At Great Lakes Insurance, we can help you determine how much coverage you need and compare rates from multiple insurers to find a policy that works according to your interests and preferences.
We can also help you find ways of reducing your overall insurance costs, whether by raising your deductibles or qualifying for discounts. For example, additional savings may be available for renters who install monitored home alarm systems or purchase renters and auto insurance from the same carrier.