Renters Insurance

An Inexpensive Way to Protect Your Belongings and Liability

Renters insurance protects your personal property in case it is lost, damaged or stolen. It also protects you if someone is injured or has sustained property damage while on the property you are renting. Renters policy, if used properly, is an inexpensive way to ensure that you don’t get stuck paying someone’s medical bills if they are injured on your property or pay to replace your items in the event you are burglarized.

Most renters policies provide personal property and liability coverage, but it’s important to check with your provider so you can be sure what your policy covers. Many landlords in Colorado require you to have at least liability coverage and may offer that to renters through the company that provides their insurance. However, usually these landlord-provided plans don’t cover your personal belongings, only your liability. So it’s best if you get it yourself.

Even if your landlord or property manager doesn’t require you to hold renter’s policy, doing so could save you money down the road if your belongings are damaged or stolen or if someone gets injured while in your rented home. Insuring your rented property is typically much less expensive than a home policy. Lucky for you, our dedicated team here at AMERICAN CAPITAL INSURANCE will help you get the best value around.

Getting the Most Out of Your Renters Insurance Policy

Replacement Cost Coverage vs. Actual Cash Value

When choosing a renters insurance policy, be sure to pay attention to how you will be paid for
items that are lost, damaged or stolen. A replacement cost coverage policy will pay you what it
costs to replace your item after you make a claim and pay the deductible. An actual cash value
policy will pay you what the item is worth after you make a claim and pay the deductible, taking
into account any depreciation.

Additional Coverage for Expensive Items

Your insurance policy will pay for you to replace or repair your personal belongings up to a
certain amount. So if you have items that are more expensive than the amount your policy will
cover, you should look into purchasing an additional type of coverage called an endorsement, or
a scheduled personal property floater.

Making Sure You Can Use Your Insurance to Replace
Your Belongings

Some people who have renters insurance in Colorado make the mistake of not taking
inventory of their items and keeping proof of purchase. If you can’t prove to the company that
you owned the items that you are claiming to have been stolen or destroyed, they won’t be able
to help you replace them.
That’s why it’s so important to keep a detailed list of every item that you want to insure. You
will need to take photos of the item, have a recent receipt of purchase or appraisal certificate, and
log any model numbers or serial numbers. Make sure to store this information somewhere
outside of your home so that it isn’t lost or destroyed if a fire or natural disaster occurs. Many
policy holders store this information in the cloud so that it can be easily accessed by them from
anywhere.

Examples of Covered Incidents:

 Theft
 Vandalism
 Smoke, if sudden and accidental
 Sudden and accidental discharge of water or steam from plumbing, heating, or air-conditioning
system, or household appliance
 Fire or lightning
 Windstorm or hail