Renters Insurance

Yes. Coming in at an average of less than 50 cents per day, renters insurance in California will be there for you when you need it most at a price you can afford.

No. Your landlord’s insurance covers the building and some of its systems, but it will not cover your personal belongings.

Yes, it is the right of the landlord to require their tenants to carry renters insurance.

The best way to determine that is to take an inventory of what you would need to replace if it was gone tomorrow. Most people underestimate how much their belongings are worth. If you had to go out and buy new clothes, cookware, spices, electronics, sports equipment, music or other collections, how much would it cost? That’s how much you should get.

Remember, the standard policy will not cover expensive items over a certain amount so make sure you have a rider or an add-on if you need to ensure something for more.

Don’t forget to factor in your liability if someone gets hurt at your home or your dog bites someone.

It depends on how it got broken. If it’s due to misuse, normal wear and tear or age, then no. However, if your ceiling fell in because of a busted water pipe in the wall and your TV was ruined, then yes.

Yes, your laptop should be covered if you lost it due to theft – even when off premises. However, coverage for electronics only foes up to a certain amount in a standard policy, so make sure you have enough coverage to replace it.

Your renters insurance liability coverage should help you pay for their medical expenses, as well as costs associated with a legal suit.

You can but it’s generally discouraged and here is why: Your roommate should have their own policy for their belongings. What if they move out and you are left with a premium that includes their stuff that’s no longer there? It can be hard to determine who owes what based on items in the unit. For example, you own the furniture but they own the TV – how much should you pay and what’s their portion?

When you get your renters policy, you’ll be asked to decide if you want to insure your belongings for actual cash value (ACV) or replacement cost.

• ACV: Your belongings will be valued at their depreciated value. For example, your laptop is two years old. You’ll receive an amount equal to the current value of the laptop.
• Replacement cost: Your belongings will be valued at the cost to replace them. You will receive enough money to buy a new laptop of similar make and model.

The premium on an ACV policy is lower than on a replacement cost policy.