A Consumer Guide to Renters Insurance

For renters, it’s what’s on the inside

that counts.

In the event a disaster strikes, such as a re,

your landlord’s insurance coverage will take

care of damage to the building’s structure.

However, to nancially protect yourself and

your belongings, you may want to consider

purchasing a renters insurance policy.

Loss of Use (Coverage D) pays your

additional living expenses (costs over the

normal amount for housing, food, and other

essential expenses) if you temporarily move

because damage from a covered loss

renders it uninhabitable.

Personal Liability (Coverage E) pays to

defend you in court against certain lawsuits

and provides coverage if you are found

legally responsible for someone else’s injury

your dog biting someone at the park.

Even the most comprehensive coverage

will exclude certain types of damage.

For instance, ooding (including

tidal surge), is NOT covered. (Flood

insurance is available through the

National Flood Insurance Program:

www.oodsmart.gov)

the event of a covered loss, Actual Cash

Value coverage will reimburse you for the

value of your personal property as it is

now, considering its age and condition (and

minus your deductible). Many insurers offer

an option to purchase an endorsement for

replacement cost coverage on personal

property – which would pay the actual

cost of replacing your possessions with no

deduction for depreciation (but still minus

it would cost $1,100 to replace it. With a

replacement cost endorsement, the insurer

will pay you the current replacement cost

Actual Cash Value vs. Replacement Cost

Important to Note:

Fire and lightning; Sudden and accidental

damage by smoke; Explosion; Theft;

Vandalism and malicious mischief;

Aircraft and vehicles; Windstorm and

hail (Note: Some policies may include a

Renters insurance policies cover losses by:

Flooding (including tidal surge);

Earthquakes, earth movement, landslides,

mudslides and sinkholes; Termites,

insects, rats, mice, birds or other vermin;

Freezing pipes (unless water was shut off

or building was heated); Losses if your

rental unit is vacant for the number of

days specied by your policy; Wear and

ownership or use of an automobile and

other types of motorized land vehicles,

aircraft or certain watercraft; Intentional

acts caused by you or a resident of your

home; War or nuclear hazard

What’s Not Covered

Renters insurance policies do not cover

losses by:

20 West State Street

PO Box 325

www.dobi.nj.gov

609-292-7272

1-800-446-7467

Deductible

The amount of the loss which you are

responsible to pay before benets from

the insurance company are payable.

Depreciation

A decrease in value due to age, wear

and tear, and the like.

Endorsement

An amendment to the policy used to add

or delete coverage (Sometimes referred

either overall or under a particular

coverage.

Premium

The amount of money an insurance

company charges for insurance coverage.

One size does not t all

Not all renters insurance is the same –

some policies cover more than others

and costs for the same coverage may be

different from company to company.