Thefts, Floods, Fires

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Thefts, Floods, Fires.OH MY!

• A primer on renters insurance

Off-Campus Student Services offcampus_at_ups.edu 879-
3374
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COMMON MYTHS
1. My landlords insurance covers me.
This is a common misconception among renters, and
it is untrue in almost all situations. Your
landlord carries insurance that will cover his
loss in a situation where the building is
destroyed or damaged in some way. Your landlord
is covered in case someone (including a tenant)
is injured on the property, though not in your
apartment.
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COMMON MYTHS
2. Renters insurance is expensive.
The truth is that an average renter can get
complete coverage for a couple hundred dollars or
less a year, depending on where she lives.
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COMMON MYTHS
3. My roommate has it, so I dont need it.
The truth is that your roommates insurance will
cover his possessions, but it will not cover
yours unless you are listed on his policy. It is
possible (and even encouraged) for roommates to
get a single policy to cover all inhabitants and
possessions in the apartment.
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Things To Consider
1. Replacement Cost vs. Actual Cost
A basic policy usually provides for the actual
cash value of your belongings after depreciation.
If you have expensive electronics or other
pricey items, you might want to consider
replacement cost coverage instead. In this case,
you would be reimbursed for the complete current
cost of buying the new item. Of course,
replacement cost coverage is more expensive, but
may be worth it in many cases.
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Things To Consider
2. Deductibles
Like any insurance policy, renters insurance will
have deductibles. This is the amount of loss you
will have to cover out of pocket before receiving
any money from the insurance company. The higher
the deductible, the lower the premium, but you
must balance your ability to cover the deductible
with the monthly premium savings.
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Things To Consider
3. Endorsements
Like homeowners insurance, renters insurance
usually wont cover you for acts of God such as
floods and earthquakes. You can get endorsements
for these however, and you should seriously
consider them. Endorsements can also be used to
extend the amount of coverage on the policy or
the incidents which are covered.
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Things To Consider
4. Loss of Use Coverage
If something happens, like a fire for instance,
that means you cant live in your apartment or
rental home for a period of time, you may have to
live in a hotel and eat meals out. Your renters
insurance can and should cover such loss of use
just as your auto insurance covers a rental car
while yours is in the shop.
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Things To Consider
5. Liability
Your basic renters insurance will include
liability coverage should someone be injured in
your rental unit. As with car insurance, there
is a per-incident limit on this coverage, and you
should make sure this is high enough. Increasing
liability coverage will often not increase
premiums much at all.
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Things To Consider
6. Floaters for Special Items
If you have such items as valuable jewelry,
antiques, furs, or other big-ticket items, they
often will not be completely covered under a
basic policy. To fully cover these items from
loss, you will want what is called a floater.
These are essentially separate policies covering
only these items and can be very inexpensive
relative to the replacement cost of the items.
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Things To Consider
7. Appraisals
If you do have such things as antiques, jewelry,
furs, or other items not easily replaced but
highly valuable, you may need to have an
insurance appraisal done so you can have the
coverage you need as well as the paperwork you
will need to prove its worth. These appraisals,
as well as a complete inventory of the items in
your rental unit, should be kept somewhere
outside your apartment or at least in a fireproof
safe. Often, you will be able to place copies of
such paperwork with your insurance agent.
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Things To Consider
8. Inventory
Inventory the possessions you would most want or
need replaced were they to be lost as well as any
big-ticket items for which you may need special
coverage. This could include your stereo and
computer equipment, antiques, jewelry,
appliances, and furniture. Gather details of
make, model, serial number, age and costs (both
purchase and current replacement) and put them in
a spreadsheet and print it or write them down.
Remember to put this list in a fireproof safe or
somewhere outside of your rental unit. Also,
take photos of as many items as possible for
identification purposes and keep these pictures
with your list.
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How Do I Find a Provider?
1. Mom and Dad
The first place you may want to look is to your
parents. You might already be covered under
their homeowners policy depending on your age
and living situation. However, it is likely that
any coverage under your parents policy is
limited and may not cover all of your belongings
or what is important to you.
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How Do I Find a Provider?
2. Current Auto Insurance Policy
The second place you should look is to your
current auto insurance policy. If you already
have a policy that covers your vehicle, chances
are that the same company offers homeowners and
renters insurances as well. This could save you
money because some companies offer discounts when
you have two or more policies with them. Plus,
it condenses your bills into one.
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How Do I Find a Provider?
3. Shop Around
Even if your current auto insurance provider
offers renters insurance, you should still shop
around. Other companies may have better rates or
policies. Do your research by calling different
insurance agencies or looking them up online.
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Prevent Theft
1. Crime Free Housing Program
The Tacoma Crime Free Housing Program, developed
by the Tacoma Police, Human Rights, Fire, and
Public Works Departments, is designed to help
landlords and tenants develop partnerships in a
neighborhood environment and foster a safe living
environment free of illegal activity. Encourage
your landlord to get certified in the CFHP or
find out if your rental unit is already certified
by looking at this website. http//www.cityofta
coma.org/default.asp?main/34HumanRights/Crime
Free Housing/crime free housing.htm
2. Lock Your Doors
3. Report Anything Suspicious
Tacoma Police Non-Emergency [phone] UPS
Campus Security Services [phone]
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Questions?Stop by our office, call, or email
for more information.
Off-Campus Student Services Wheelock Room
203 [phone] offcampus_at_ups.edu