Facts and Informations About California Renters Insurance
Renters Insurance—an Optional Necessity
You are not required by law to have renters insurance. But if you add up the value of all your personal possessions—your MP3 player, television, bass guitar, furniture, kitchen appliances, etc.—you will realize protecting the value of these goods is essential.
Just because you are renting an apartment doesn’t make you immune from damage or loss of personal belongings. And just because your landlord has adequate insurance protection doesn’t mean that you do.
Most California renters insurance policies provide coverage for damage from fire and smoke; lightning; water; hail; weight of snow, ice, or sleet; windstorms; falling objects; explosions; theft, and vandalism as well as accidents involving certain appliances, heating systems, and electrical current.
What About Earthquakes and Floods?
Like home policies, most California renters policies do not insure against earthquake and flood damage. In California, the law requires that companies provided residential property insurance—which includes renters insurance—offer earthquake coverage. Earthquake coverage is purchased as an addition to the policy, but about two-thirds of the companies in California belong to the CEA, California Earthquake Authority, and can offer affordable CEA earthquake policies. Although flood damage is not normally covered, the federal government offers flood insurance through the National Flood Insurance Program (NFIP).
Actual vs. Replacement Value
To get the most from your coverage, you will want to insure for the replacement value of your possessions, not the actual value, or cash value. The actual value on most items will have decreased significantly over time. In case of loss or damage, you want enough money to buy new items to replace the lost or damaged ones.
Making an Inventory
One way to determine your insurance needs is to make a catalogue of your personal property, perhaps with photographs or videos, and keep this record of your possessions safe for proof in case of damage or loss.
To get the best deal along with the coverage you need, first
- determine the replacement value of each piece of property, and
- list and set a reasonable value for all your possessions.
Then shop around for renters insurance, and
- get quotes to compare insurance costs.
If you own expensive, specialty items such as electronic equipment, computers, antiques, costly jewelry and watches, firearms, fur coats, etc. you may want to purchase high-value item coverage, also called a rider or personal-articles floater, to adequately protect these valuable goods. Most insurance companies do not automatically cover these types of possessions, and certainly not enough to recover their value.
Liability Protection and Additional Living Expenses
You can also add liability protection to your California renters policy. Your landlord’s policy most likely does not cover injuries inside your apartment. Liability protection will help pay for damages for which you are liable and medical expenses for guests injured in your apartment.
Policies can also include additional living expenses in case your apartment is so badly damaged that you cannot live there until it is repaired.
The Fine Print
Finally, make sure that you know exactly what’s covered and what isn’t in your policy. Always read the fine print of a new policy to make sure there will be no disappointing surprises after a personal loss.
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