Why Is It So Important to Have Renters Insurance in San Francisco?

san francisco skyline

It’s important to have affordable renters insurance in San Francisco – and anywhere you live – because replacing your belongings will cost more money than you think. As a San Francisco resident, you are living in one of the most expensive cities in America. A fire or a break-in could put you in a challenging position financially if you have to replace your possessions out of pocket.  

It probably wasn’t easy finding a way to afford your own place in the Golden City and your budget needs to stay constant – with no huge ups and downs. Renters insurance is cheap when you compare it to the cost of buying everything you need all over again. 

Let’s start with the basics. 

What Is Renters Insurance?  

Renters insurance in San Francisco covers what’s yours. That’s the easiest way of thinking about it. 

When you move into rented spaces of any kind — whether it’s an apartment, a house, duplex, condo, or even a houseboat — your landlord is responsible for all that’s not yours. The electrical, plumbing, and HVAC systems and the roof, walls, and floors, all of that is (hopefully) covered by your landlord’s insurance policy. 

But what about all the stuff that’s yours? Let’s say your apartment building catches fire. Your landlord will repair your space, re-plaster, repaint, and do whatever else is necessary to return your apartment to the condition it was in when you signed your lease. 

But what about your electronic devices, your clothing and furniture, and everything else you lost in the fire? Who pays for that? And what about the financial hit of having to rent a motel room or other temporary housing for the several months you’re out of your apartment while it’s being rehabbed? In one of America’s most expensive cities, you have to find — and pay for — living space that was never built into your budget. 

What Does Renters Insurance Cover? 

If you had rental insurance, those expenses would be covered. Most renters insurance policies cover damages to your belongings caused by fire and smoke, flooding caused by broken pipes or weather events, theft, vandalism, and other calamities. 

In addition, renters insurance includes liability coverage. Let’s say you get a visitor who slips and breaks a leg because of a kitchen spill. Your liability feature will cover your legal costs if you’re sued for that accident. 

Don’t think you can avoid the need for renters insurance in San Francisco by being careful. While you may be responsible, that doesn’t mean other renters are as responsible as you, and accidents happen. When you share walls, you can face financial ruin by acts beyond your control. 

So How Much Does Renters Insurance in San Francisco Cost? 

This is the good news. Renters insurance is very affordable, even in this pricey city. It’s likely to cost you only about $23 a month or so for this coverage here. For what amounts to pennies a day, how can you not protect yourself? 

You can save even more if you take on a higher deductible. 

renters insurance policy with keys

What’s a Deductible and How Does It Affect My Renters Insurance? 

A deductible on your renters insurance works just like it does with your car insurance. The cost of your policy is adjusted depending on how much you agree to pay upfront for a claim before your insurer pays the rest. 

So if you have a $500 deductible on your renters insurance and you suffer $5,000 in fire and smoke damage to your possessions, you’ll pay that first $500 and your insurer will be responsible for the remaining $4,500 in settlement costs. 

The higher the deductible you assume, the less you’ll pay for your renters insurance policy. That’s because if you assume a proportion of the damage cost, the insurance company will have less to assume. 

It’s a delicate balance determining what mix of deductible and coverage best meets your financial abilities. If your deductible is too low, you might have a hard time paying for your premiums. But if it’s too high, you might have a hard time coming up with the deductible amount when you need it most. 

This is where your insurance agent can help you. Ask them to run coverage costs with various deductible amounts to find the combination of rate and deductible that works best for you. 

Should I Get Actual or Replacement Cost Value Coverage? 

This is another factor that will determine what you pay for renters insurance coverage. And once again, your insurance agent should be able to help you figure out which is best for you. 

An actual cost value policy pays you what your covered item is worth today. A replacement cost value plan pays what it would cost to replace the item today. Let’s consider a laptop as an example. Maybe you paid $350 for your laptop six years ago, but that’s not what it’s worth today. Maybe a six-year-old version of that brand and model can be bought for $80. That’s what your insurance company would pay you if your laptop got stolen or ruined in a fire. 

But what if that same computer brand and model now costs $400? If you have replacement cost value coverage, you’ll receive enough of a claim settlement to get a new laptop of the same make and model. Since it will pay out more, a replacement cash value policy will cost more, but the difference is very small. Your insurance agent can help you figure out which policy type is better for your needs and budget. 

You have enough financial challenges with living in expensive San Francisco, California. Having a very affordable rental insurance policy can ease a great deal of stress and let you enjoy the many amenities available to you in the Golden City. 

Contact Cost-U-Less Insurance for Affordable Renters Insurance in San Francisco, CA 

To begin your search, get a quick online insurance quote or simply contact your independent Cost-U-Less insurance agent at (800) 390-4071. You can also find a location close to you for a face-to-face meeting with an agent who can answer all of your questions.