Tague Alliance - Renter's Insurance Needs

Attention: Tague Alliance members. It is very important to make sure you are consistently cross-selling your auto accounts. Many people are renters and they do not realize that they can get Renter's Insurance virtually for free. How you may ask? Almost every insurance carrier provides large multi-policy discounts. Many times these discounts fully or almost fully offset the annual cost of Renter's Insurance.

Consider working on all of your mono-line auto policies by cross-selling Renter's Insurance to your clients. The article below will give you some info to use in your marketing effort.

Renters’ Insurance Needs

Persons who live in apartments or rent a residence are fortunate. Most insurance companies can protect their assets and belongings by using a policy that is designed especially for tenants. Typical policies cover your possessions for common causes of loss, additional living expenses related to making other living arrangements, medical expenses for treating people injured on your premises and, of course, lawsuits.

Property Coverage
Protection under a standard renters policy is on an actual cash value basis (item’s replacement cost less depreciation).

Example: Stewart’s kitchen catches fire and his five year old refrigerator is destroyed. A new model of the refrigerator costs $750. His insurance company pays him $162, explaining that it’s the effect of five years of deteriorating value. Most companies offer coverage on a replacement cost basis if you purchase a separate endorsement.

Theft Limitations
Certain types of property are quite vulnerable to being stolen, therefore very limited coverage is available for items such as jewelry, furs, gems, gold, silverware, pewterware, money, securities, guns and accessories. Protection can be increased by adding additional coverage to the tenant policy or by purchasing a personal article floater policy.

Additional Living Expenses
A typical tenant policy provides a limit equal to 20% of your contents insurance limit. If your contents limit is $15,000, then your additional living expenses limit will be $3,000.

Liability Coverage
Liability insurance covers you for injury you cause to others and for damage to property that belongs to others. The policy also provides for the cost of a lawyer (if necessary) and most court costs. Examples of liability claims include: slips and falls; beaning a neighbor’s child with a baseball; hitting a golfer with your errant hook shot; or a friend breaking her hip when she trips on a skateboard your child left on the stairs.

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