Often, people ask how much renters insurance do I need. The answer, of course, is always subjective, but there are a few ground rules that can help you understand how much coverage you need on your Cary, NC Renters Insurance. Don’t worry, it’s not nearly as complex as the 50 page policy document makes it look!
How Much Renters Insurance Do I Need In Cary, NC – Liability?
Liability is what keeps your screwups from costing you money. OK, so that’s not the formal definition of the coverage, but it’s a good summary. If your negligence hurts someone or damages their stuff, the insurance company pays up to the policy limit instead of you paying.
Medical bills get very expensive very quickly if you hurt someone. Or if your kid hurts someone by running into a person on their bike, for instance. But it’s not just paying for the injury or loss that’s important. Your renters insurance liability coverage also buys a lawyer to defend you if the person who was hurt tries to sue you.
You know what lawyers cost, right? Yeah, enough said there. Keep in mind that the insurance company’s duty to defend you basically lasts until the policy limits are exhausted. That means your free lawyer only lasts as long as the policy limits do. What does that mean to you?
You need as much liability coverage as you can get on your renters insurance. The good news is, liability coverage is quite affordable. The difference between $100,000 and $300,000 might be as little as ten bucks a year. That’s less than a dollar a month if you average it out. It just makes sense to get as much coverage as possible.
How Much Renters Insurance Do I Need – Personal Property?
Quite clearly, this depends on how much stuff you have. But don’t just add up what you think it might be worth, and don’t just add up your stuff. Don’t forget to add the cost of all the things your kids have, all the things in closets and drawers and cabinets, etc. Make sure your total includes things often forgotten.
Why don’t you add up what you think it might be worth? Because renters insurance in Cary, NC generally comes with replacement cost coverage. In other words, you don’t claim what it’s worth today after depreciation – you claim the amount that it will cost you to go out and buy something equivalent today at retail. In insurance terminology, that’s known as “like kind and quality.”
Is your TV old? You’d value it at the amount you need to buy a similar size and quality TV today. That means if you have a 32 inch TV with a tube, you want to think about what it will cost you to buy a similar brand of 32 inch TV today – it would be a flat screen, since the tube TVs are no longer made. Make sense?
How Much Renters Insurance Do I Need – Medical Payments To Others?
This is a coverage that’s often misunderstood. It’s no-fault, so it doesn’t matter why or how, but if someone is injured on your premises, this coverage pays for minor injuries to guests. What’s the real goal of the coverage? To make sure that small injuries to guests don’t turn into liability claims and defense costs.
If someone suffers a minor injury on your property, you want to make that problem go away quickly, right? With that in mind, you should take the most medical payments to others coverage that’s available. Usually that’s $5,000. That will make many small problems turn into non-issues, but your liability coverage above is still there to protect you from the big concerns and to defend you.
How Much Coverage Do I Need – Loss Of Use?
Here’s one you often don’t have to worry about – the amount of coverage for loss of use is generally tied to the amount of personal property coverage that you have. What does it do? After a loss like a fire, you won’t be able to use your apartment for a while. You’ll need a place to stay and have other expenses as a result. Loss of use takes care of those expenses.
What About All The Options?
Yes, you need water backup coverage on renters insurance.
If you have jewelry, you should consider endorsing jewelry onto your renters insurance.
If you have other people living with you, there’s a right way to add roommates to renters insurance.
If you’re moving in with a partner, there are things to think about for renters insurance when moving in together.
If you still have questions – and we know you do – you can easily ask a renters insurance expert. Effective Coverage offers the expertise you need, and a dedication to the insurance need of renters. Effective Coverage also offers the ability to get covered in just sixty seconds online! All you have to do is call (800)892-4308 or click to get covered - whether you need Cary renters insurance quotes online or coverage anywhere else!
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