According to Neighborhood Scout, Rhode Islanders have a 1 in 80 chance of becoming a victim of a property crime. Fortunately, your Rhode Island renters insurance can help reimburse you if your belongings are stolen, provided you have sufficient coverage. Typically, landlord’s insurance only covers the building and damages due to negligence.
Your renters policy includes several sections, including personal property, personal liability, loss of use, and more. It is the personal property coverage that can help pay for stolen or damaged personal belongings, provided the loss is caused by a peril included your policy such as theft.
Coverage includes inside and outside of your home, which may include items stolen from your car or a hotel room, even if you are abroad. However, every policy differs and you need to purchase enough coverage to protect you well.
Every renters insurance policy includes a personal property coverage limit. As an example, your $10,000 policy represents a maximum of $10,000 paid by your insurer as compensation for loss or damage to your personal property due to a covered loss such as theft, less your deductible.
Regrettably, most people don’t know the value of the things they own. Our sample $10,000 might seem like a great deal of money, but what happens if a thief clears out your apartment?
You should start with a home inventory to properly align coverage with needs. At the very least, take photos or videos of everything you own and then make a rough estimate by searching for each of the items online.
Your policy has an overall limit on loss, but it also has special limits on specific belongings. These are generally high-ticket items such as jewelry, antiques, collectibles, musical or photographic equipment, electronics, and more. However, special limits may also apply to what you might consider everyday items such as bicycles.
The special limit on these items is usually low. For instance, jewelry coverage is typically around $5,000. If you own a costly engagement and wedding ring, this isn’t enough coverage. The limit on bicycles can be as low as $1,500. If you own an expensive racing or mountain bike, you’ll need more coverage. E-bikes may not be covered at all.
Preparing a home inventory helps pinpoint these items which require additional attention. Your insurance agent can “schedule” this valuable property on your policy to increase your coverage for a reasonable fee. Alternatively, they can direct you to insurance products that can protect your belongings.
If you are looking to compare coverages and pricing for renters insurance, you may be wondering what companies are out there that offer the coverage. At Cross Insurance, we work with dozens of carriers, from New England based companies to national names, which means more options for our clients.
Renters insurance policies can differ greatly. Actual cash value (ACV) coverage includes depreciation. If a thief steals your property, the insurer typically will pay you a lower amount due to wear and tear over time. Depreciation rates vary, but are highest for objects such as computers and electronics.
Alternatively, you can buy replacement costs coverage. It costs more, but it also offers funds to replace your stolen item with a new, similar item. You will still pay your deductible.
Renters insurance policies can vary. Be sure to review your policy carefully with your local insurance agent to see what is and is not covered. Generally, your insurer will not compensate a claim if they believe the theft occurred due to the policy holder’s negligence. As an example, they may not pay for your stolen bicycle if you left it unlocked out in the open in front of your apartment.
Items in your luggage after you check into an airline usually aren’t covered, because they’re considered in possession of a third-party. You would need to file a claim with the TSA and airline.
Ready to start the quoting process for renters insurance? Reach out to our local Rhode Island insurance agency by filling out our form here, or giving us a call. From there, our knowledgeable team will gather more information on the items you are looking to cover.
This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.