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Renters/Condominium Insurance

Just because you don't own your own home doesn't mean that you don't need a homeowner's insurance policy. Because renters insurance is a homeowner's policy, it has the same two parts.

The standard renter's insurance property coverage section covers two different items:

1. Your personal property - your contents. You should always have this coverage structured on a replacement cost basis. You need to work with your agent carefully to determine the right coverage amount for you. Also some kinds of your personal property are restricted to lower amounts of coverage. Items like jewelry need to be carefully considered.
2. Loss of Use - if you have a major claim at your house, you may need to relocate. However, your mortgage payments will continue; so will your real estate taxes. Essentially your living expenses will increase if you have to live in a hotel temporarily. Loss of Use coverage pays for this increase in your living expense.

Liability Coverage

There are two parts of liability coverage

1. Liability coverage - like auto insurance, it will pay for your legal defense and pay for any damages you have to pay if ordered by a court or agreed to in a settlement (up to the limit of your policy). Some example of liability claims we have had are dog bites and tripping and falling of guests.
2. Medical Payments - This coverage will pay for limited medical expenses incurred by someone who is hurt on your property.

What is your personal belongings worth? Do you have an expensive bike, a flat screen TV or a computer? Without a renter's policy, you will have no protection if these items are damaged or stolen.

Special note for Condominium Owners

Condominium owners require special care in crafting their coverage as the ownership of your home is very unique.

Property Insurance - in addition to determining the proper amount of coverage on your personal property, you need to consider how much insurance you should carry on your dwelling - or more specifically, the part of the building that you actually own. Most of the physical structure of the condominium unit is owned and insured by the condominium association, but there are items that are owned by the homeowner. Items like kitchen cabinets, bathroom fixtures, and heating equipment are just some of the examples. Care must be used to determine the correct value

Loss Assessment Coverage - Because your home is part of a community of fellow owners, you are also a "partner" with your neighbors in the ownership of common property. Should a covered claim occur to that common property but the condominium's insurance policy either overlooks that item or is not adequate to cover the claim, the homeowners association can assess each homeowner for their share of the uncovered damages. Loss Assessment Coverage covers this exposure for the homeowner.