Page 15 - AAA Every Day – AAA Hudson Valley – March/April 2021

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Whether you’re a first-time renter, moving into a new area or downsizing after owning a home, obtaining renters insurance does not always tend to be the top of your to-do list, even though it should be. Every renter should have coverage and keep the following things in mind.
Rates are reasonable. Despite the affordability of renters insurance, it is shocking to hear how many tenants don’t carry it. Available policies can be as low as $10 per month which is based on credit and coverage. If you have fire and/ or smoke damage in a rented single-family home, apartment or condo, renters insurance is critical for replacing your personal belongings, subject to the deductible.
Make sure to distinguish usage. Insurance companies typically replace personal property in two ways: Actual Cash Value and Replacement Cost. ACV pays to replace the item(s) minus any depreciation. Replacement Cost means the policy would pay out what it would cost to replace the item(s) today. For example, if you have a flat- screen TV that is five years old, ACV would only pay out what that TV is worth today, whereas Replacement Cost would not factor in how old the TV is. In this case, the insurance carrier would find one comparable to it despite the depreciated value. Always make sure you ask for Replacement Cost on personal property.
Be prepared. Many tenants are under the impression that the landlord’s or property management’s insurance policy will pay to replace their personal items in the event of a
claim, but chances are it will not. You can control what you do, however, you cannot control what others do. Every year, countless people lose their belongings and sometimes even their homes because of the actions of someone else.
It can travel with you. Most renters insurance policies will cover your personal belongings anywhere in the world, either in your locked vehicle or when traveling with luggage. Theft or malicious mischief also is covered except where certain circumstances apply. Add up
the cost of your electronic items such as cell phones, laptops, tablets as well as other belongings you keep in your car while traveling and you will quickly see how much it would cost to replace these items subject, of course, to the policy deductible.
It provides extra protection. Did you know if you have an animal and it bites someone, you can be sued? Likewise, if you have a get-together and someone is accidentally injured, you also can be considered liable. Renters insurance provides liability coverage that protects you, based on the limit you have, paying for legal expenses and court judgments that could be incurred. While there are many more aspects to renters insurance, these are some of the highlights. Coverage for every prospective and current renter is important. To learn
more about renters and other types of coverage that may fit your needs, please contact a AAA Hudson Valley Insurance Agent or visit AAA.com/Insurance.
Eman Badr is a Certified Professional Insurance Agent and Manager of AAA Hudson Valley Insurance Agency.
MAR/APR 2021
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MOVER’S HANDBOOK
Why Renters Insurance?