Effective Coverage lives by a set of core values that drive our business and our interactions with all of you every single day. One of those core values is education, because we believe that it’s impossible to be an informed consumer if you’re not familiar with the type of policy that you’re buying.
How can you make good decisions about Columbia, SC Renters Insurance if you don’t know what each section of the policy does?
Fortunately, it’s not nearly as complex as it looks from the outside when you first pick up a policy. We’ve touched on Coverage A and Coverage B on your renters insurance policy, now let’s look at Coverage C to see why it’s important and what it covers. The fun starts just below our Video Renters Insurance Guide.
What Is Coverage C On Renters Insurance?
Coverage C on renters insurance is what’s also known as “personal property” coverage. This is there to protect your stuff, and to make sure that a loss doesn’t leave you scrambling to replace everything that you own. Whether you’re looking for Clemson student renters insurance or you need coverage for an entire home that you’re renting, you’ll need to protect your stuff.
You might well think that you don’t have all that much stuff… Until you move! When you move, you realize that everything is in a box, those boxes are heavy, and there are many of them. Incidentally, moving is a great time to make a list of everything you own and store it in the cloud. With that list, it’s much easier to file a claim and account for everything.
Coverage C is crucial because there are a wide variety of things that can damage or take away the property you’ve worked so hard to acquire. If you “don’t have much,” you still might be surprised at the total value. The people who don’t have much are often the ones who can least afford to be without renters insurance! In fact, a study commissioned by Effective Coverage found that the people who can’t afford to be without renters insurance often are the ones who don’t have coverage.
If you would have difficulty replacing the first few thousand dollars of your personal property after a large loss, the clothes and electronics that you depend on every single day, Coverage C is important to you because you need to immediately replace those basics and the insurance will take care of that for you.
But that gives rise to a common question,
How Is My Renters Insurance Claim Valued?
Most renters insurance in South Carolina will value a claim under Coverage C at replacement cost. Originally, policies were written at actual cash value so depreciation was subtracted. But as prices rose and wages stagnated, it became clear that what most people need is replacement cost coverage.
So how does replacement cost work on Coverage C? What exactly are they replacing, and how do they determine the cost? Let’s say that you have a television. It’s 32″, but it’s a hand-me-down. It’s so old that it’s still got a tube, and you can’t even buy those anymore. After a fire, the TV needs to be replaced. Actual cash value of your property was maybe five dollars.
With replacement cost on Coverage C, you’ll get the money you need to go buy an equivalent item of like kind and quality at retail. That means you’ll get what you need to buy a comparable 32″ TV today, even though it will be flat screen because the other type isn’t made anymore.
Think about that across your entire home. Everything you own, depreciated, is worth very little. But it would cost you an arm and a leg to replace it all. Coverage C with replacement cost is designed to help you replace it all so that you can get back to living your life with minimal disruption.
What Are These “Named Perils” That Coverage C Applies To?
The policy contains a list of “named perils” to which Coverage C applies. These are the specific causes of loss that would trigger your policy to pay for replacing your property. They’re all pretty straightforward, though sometimes you may find that windstorm or hail is excluded from Columbia, SC Renters Insurance due to location and coastal risk. That’s specific to the policy, so be sure to ask! On the other hand, since you’re not responsible for the building itself, wind and hail coverage might not be important to some people. That’s a personal risk tolerance issue, at its core.
Fire or Lightning
Windstorm or Hail (Possible exclusion, see your policy)
Riot or Civil Commotion
Vehicles (Not your own!)
Vandalism or Malicious Mischief
Weight of Ice, Snow, or Sleet
Accidental Discharge or Overflow of Water or Steam
Sudden & Accidental Tearing Apart, Cracking, or Burning
Sudden & Accidental Damage From Artificially Generated Electric Current
These perils cover a vast majority of the things that could happen to your property. Coverage C is a big part of the reason why the standard renters policy is called the “broad form” policy. It gives you broad coverage for a long list of perils.
The national average price of renters insurance is just $187.00, according to the III. That works out to as little as fifteen dollars per month. The vast majority of families can budget renters insurance easily at those prices.
Additionally, it's important to note that renters are at a significantly higher risk of experiencing loss than homeowners. Renters occupy roughly one third of total housing stock in the country, and yet they are fully fifty percent more likely to experience theft than homeowners, according to the Bureau of Justice Statistics.
It only costs a few dollars a month to protect your family, and this cheap renters insurance is a great way to mitigate the additional risks that come with being a renter.
The best part is that renters insurance in South Carolina is often even less expensive than the national average!
Effective Coverage offers the nation's only completely mobile platform to quote and purchase renters insurance right from your phone or tablet in just one minute. Get an online renters insurance quote today and protect your family.
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- Do You Need Some Time Alone With Your Thoughts? We understand, which is why we created the South Carolina Guide To Renters Insurance.
- Just Want To Watch A Movie Together? See our Video South Carolina Renters Insurance Guide!