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Return To: Renters Insurance – The Ultimate Guide
Dave Ramsey is trusted by millions of people across the United States as a no-nonsense guide to all things finance!
In fact, Dave set up the Dave Ramsey ELP Program to engage trustworthy, Independent Insurance Agents to help Ramsey Fans through the insurance buying process.
One coverage Dave, and everyone at Ramsey Solutions, appear to believe is Renters Insurance.
In an article taken directly from the Dave Ramsey website site (Article What Is Renter’s Insurance And Do You Need It?), Dear Dave goes as far as to say “without renter’s insurance, you’ll go broke paying out of pocket for everything you lost in a fire”
What Is Renters Insurance?
Renters insurance is a type of insurance coverage that is intended to help protect renters living in a rented apartment or house.
A standard renters insurance policy has three types of coverage that help in protecting you and your belongings after a loss.
Preventing specific situations, such as a break-in or theft, may not always be possible and this is where renters insurance can benefit you.
Below are the types of coverage offered in a renters insurance policy.
|Coverage Type||What Can Be Covered||What’s Not Covered|
|Personal Property||The expenses to replace or repair belongings, such as furniture clothes, electronics, and clothing||Personal property loss that is over the coverage limit|
|Personal Liability Coverage||Repairs in case you accidentally damage someone’s property or the medical bills of a guest if you are responsible for their injuries||Liability protection that is over your coverage limit|
|Additional Living Expenses||Extra costs you incur, such as hotel bills, in case the residence you are renting is damaged and uninhabitable||Damage to the building you are renting|
Renters Insurance and Personal Property Coverage
Personal property coverage is a standard part of renters insurance and may help cover the expenses in replacing your lost items. This type of protection normally applies to specific risks, such as fire, as stated by the Insurance Information Institute.
For instance, if your clothing and furniture have been lost due to fire, this type of coverage can help you pay for the cost of replacing them. Keep in mind that coverage limits, or the maximum amount the policy can pay for personal property losses, still apply.
Does Renters Insurance Cover Theft?
If your Dave Ramsey renters insurance policy has personal property coverage, it could help pay for the cost of replacing stolen items.
Such coverage normally protects items that have been lost after a break-in at the rental property or even things that are stolen outside of the premises. For instance, if your personal item has been stolen from your car, the personal property coverage from your renters policy could help pay to have it replaced.
Take note that personal property coverage is often subject to a deductible. What this means is that you need to pay for a specific amount of money in covering the replacement or repair of an item before your insurance company pays for the loss.
Make sure that you read your renters insurance policy carefully to fully understand the things that are covered and those that are not.
How Much Personal Property Coverage Should I Get?
Consider all of the items that you own. The value of these things can add up quickly. How much do you think it would cost to repair or replace items if they were lost?
When buying Dave Ramsey renters insurance, you may be provided several choices with regards to choosing personal property coverage. There are some things you need to keep in mind.
The first is that you want to set the coverage limits that are relevant to your situation. Making an inventory of your items in the home or apartment can help you assess the value of your belongings. You can then decide how much personal property coverage to get.
Secondly, you may also need to decide on the type of personal property coverage to buy. A policy that gives you actual cash value protection normally takes care of belongings up to their present market value.
Policies that also provide replacement cost coverage could help you pay when replacing your items at today’s prices after a loss is covered.
Property That Might Not Be Protected By Renters Insurance
It is possible that personal property coverage may not help in protecting everything that you own. There are certain types of items, such as a coin collection or jewelry, which have limited coverage under the standard terms of a renters insurance policy.
It may be possible to add additional coverage, known as scheduled personal property coverage, to your existing policy to help in protecting your belongings.
You can contact a local insurance agent to guide you in determining whether this type of coverage is ideal for your situation.
How to File a Renters Insurance Claim
If you’re in need of renters insurance, here are the primary tips to consider in helping you file your own claim. Keep in mind, however, that your claims process may be different based on the extent of the damage.
- Call your local insurance agent as quickly as possible to report your claim.
- Make sure that your items are protected from further damage. Contact your agent and let them know about any emergency repairs necessary.
- Your agent will want to know about the damage to your belongings and provide you with answers to questions regarding the process.
- Talk to your agent about the coverage and limits of your policy to help you understand the terms applicable to your situation.
- Document items that have been damaged in writing and take videos or photos of the damage.
Other Things To Consider
Before your renters insurance can pay for a covered loss, you will most likely have to pay for a deductible first. This amount is usually associated with the policy’s premium.
Oftentimes you will notice that the lower your premium, the more you need to pay for the deductible.
Although the renters insurance Dave Ramsey recommends helps in protecting your items, it does not typically cover the physical building you’re staying in. Landlord insurance is intended to help protect the dwelling place of the owner, while renters are responsible for protecting their own items.
Although landlord insurance can provide liability protection to the policyholder, such protection normally does not extend to the tenants.