Are you considering purchasing a Minnesota renters insurance policy? Good thinking! Renter’s insurance is an inexpensive way to protect your investment in your possessions, even if you don’t have many valuables. We’ll answer some frequently asked renters insurance questions below to help you understand this type of coverage.

(Image courtesy of mynewplace.com.)

What does renters insurance cover? Renters insurance will cover the cost of possessions damaged or lost in an accident or from theft. If your home is damaged to the point that it is uninhabitable, your renter’s insurance will likely cover the cost of other living arrangements. Renter’s insurance also provides liability coverage, meaning you’ll be protected if someone is hurt while they’re on your property.

Is it expensive? Renters insurance is actually a very inexpensive insurance option. According to the Minnesota Department of Commerce, renters pay an average of $15 to $30 a month for renters insurance. 

Are there different types of renter’s insurance? As with any other type of insurance, companies offer different levels of insurance based on how much you’re willing to pay and what you’re trying to protect. There are two standard types. Broad form renters insurance covers personal belongings against specific events like fire and theft. Comprehensive form provides coverage for a wider range of events (usually at a higher premium.)

What is “actual cash-value” coverage? Is that what I want? Actual cash-value coverage is one renters insurance option, which will reimburse you for the cost of property at the time of the claim. It’s important to note that ACV coverage pays you what your possessions were worth at the time of purchase, not what it would cost to replace them now. (For instance, an actual cash-value claim on a destroyed computer will reimburse you for how much you paid for the computer, which probably won’t fully cover the cost of replacing it now.) Replacement cost coverage is your other option—it will reimburse you the full value of your replacement possessions. Replacement cost coverage costs more up front, but you’re more likely to get accurately compensated for a loss.

Do I need renter’s insurance even if my landlord has insurance? Yes! Your landlord’s policy doesn’t cover your possessions, so if you don’t have your own policy your stuff is unprotected.

Does renter’s insurance only cover me when I’m at home? Most renter’s insurance policies are not limited to home-based damages. Your items might be covered if they are stolen out of your car, for example. 

Am I covered for floods and earthquakes? Most renter’s insurance policies don’t cover these types of natural disasters. Check with your insurance company to verify exactly what is and isn’t covered; if you’re worried about flooding, you’ll probably have to purchase a separate policy.

Can I get discounts on my policy? Absolutely! Ask your insurance agent to help you identify ways to lower costs. You might be able to knock down premiums by installing more safety features in your home. You can also try bundling your renter’s insurance with another policy, which is often a good way to save.

If you’re renting and you don’t have a Minnesota renters insurance policy, your possessions are not protected. You might be surprised how quickly the value of your possessions adds up, even if you don’t own much—paying that small monthly premium is probably worth it. Talk with an agent today!