{"id":6083,"date":"2022-05-02T08:43:04","date_gmt":"2022-05-02T15:43:04","guid":{"rendered":"https:\/\/www.costulessdirect.com\/?p=6083"},"modified":"2022-12-21T11:38:03","modified_gmt":"2022-12-21T11:38:03","slug":"what-should-my-california-renters-insurance-cover","status":"publish","type":"post","link":"https:\/\/www.costulessdirect.com\/blog\/what-should-my-california-renters-insurance-cover\/","title":{"rendered":"What Should My California Renters Insurance Cover?"},"content":{"rendered":"\n
Your stuff. That\u2019s the quick \u2018n\u2019 easy answer as to what you should expect your renters insurance<\/a> policy to cover. <\/p>\n\n\n\n But that\u2019s only part of the story. Your policy goes farther than that. <\/p>\n\n\n\n Let\u2019s first look at what California renters insurance actually is and why you need it. Then we\u2019ll go more in-depth into what you can expect from your renters insurance policy. <\/p>\n\n\n\n Mainly, your California renters insurance provides financial protection<\/a> in the event of a loss. <\/p>\n\n\n\n Imagine you have a $300,000 mortgage, and your home burns to the ground in a California wildfire. It\u2019s suddenly worth zero, but the company that financed your purchase still wants your house payment \u2014 all $300,000 plus interest. This is why it\u2019s important to have a home insurance policy. <\/p>\n\n\n\n But you don\u2019t own a home. You\u2019re a renter<\/a>. So why do you need insurance? Your place belongs to your landlord. Bad luck for them if a fire takes it down. <\/p>\n\n\n\n Yes, your landlord owns the roof, the walls, floors, ceilings, electrical system, water pipes, and\u2026well, everything that makes up the infrastructure of the place. But you own your clothing, furniture, art, collectibles, electronic devices, and\u2026well, your<\/em> stuff. Just about everything you moved into your apartment, condo, rental house or have stored in a \u201crented\u201d storage unit. <\/p>\n\n\n\n If your personal possessions get damaged by smoke, torched in flames, water damaged from strong winds, stolen, or vandalized, how would you go about finding the money to replace it all? <\/p>\n\n\n\n Sure, if the damage is from a careless smoker in another unit or the results of sprinklers being disabled, or because the lock on your door never worked properly, you can sue someone. Or try. And in several months or years, you might even get a settlement to your satisfaction. Maybe. <\/p>\n\n\n\n But what if you are self-employed, work from home and all of your electronics \u2014 your computers and printers and smartphone \u2014 are damaged, destroyed, or stolen? Do you have the money to replace all of your expensive gear in a matter of days to avoid costly downtime? Or can you wait months or years for that settlement check? <\/p>\n\n\n\n With renters insurance, all you need to do is make an insurance claim immediately, and you’ll quickly be compensated. <\/p>\n\n\n\n Basically, everything you own up to the limits you set. Your renters insurance policy will cover you from the damages inflicted on you by natural disasters, fire or flooding, theft or vandalism, or other causes of damage or loss. <\/p>\n\n\n\n You\u2019ve got a few coverage options to discuss with your insurance agent. The first is the financial limit you want to place on your coverage. The higher the coverage level, the more your policy will cost \u2014 but the more financial protection it will provide. <\/p>\n\n\n\n You\u2019ll also determine your deductible. That\u2019s the amount of money you\u2019re responsible for before your policy pays the rest. If you sustain $2,000 in damage from flooding caused by a broken water pipe and you have a $500 deductible, the insurance company will only kick in the last $1,500. The higher your deductible, the more you\u2019ll assume financially if a covered event occurs, but your premiums will be cheaper. <\/p>\n\n\n\n The final financial issue affecting the cost of your California renters insurance policy has to do with buying an actual cost policy versus one that covers the replacement cost<\/a>. Your insurance agent can discuss the details, but know that an actual cost plan settles for what your covered item is worth today. A replacement cost plan pays what it would cost to replace the same item today. <\/p>\n\n\n\n If your computer is six years old and you have an actual cost policy, you\u2019d get the price of a six-year-old version of that make and model \u2014 a used computer, in other words. If you had a replacement cost policy, you\u2019d get the cost to buy a new computer of that same make and model. <\/p>\n\n\n\n A replacement renters insurance policy will cost more than an actual cost policy. <\/p>\n\n\nWhy Do I Need California Renters Insurance in the First Place? <\/h2>\n\n\n\n
So What\u2019s Covered by Renters Insurance? <\/h2>\n\n\n\n