New Power Generation Inc. 
NPG Financial Services Inc.
NPG CAM Services Inc. 
4700 Millenia Blvd 
Suite 500 Fifth Floor 
Orlando, FL 32839

npgfs1@gmail.com 
Chrislopez@npglife.us
calopez@npgcam.com



Insurance Read Time: 3 min

An Overview of Renter’s Insurance

Renters sometimes overlook the need for insurance based on the belief that they may not have a significant amount of personal possessions, or because the property is already insured by the owner.

While it is true that a rental property is insured by the owner, the destruction or loss of your personal belongings is not. But, that’s not the only risk renters need to worry about.

The typical renter’s insurance policy can cover your possessions against losses arising from fire, smoke, lightning, theft, vandalism, explosion, wind storm and water damage (excluding floods).

Even if you don’t believe that the value of your personal possessions warrants insurance protection (though you may think differently after an inventory of their value), renter’s insurance covers other potential risks that can adversely impact your finances.

Renter’s insurance is designed to cover damages and costs in the event that visitors are injured in your apartment or elsewhere by you, your pet or a family member living with you. This includes any legal defense expenses if you are taken to court.

A renter’s policy may also cover additional living expenses should you be unable to live in your apartment due to a covered peril, such as fire, though the policy may set limits on how much you will be reimbursed.

You should make sure you know whether a policy insures for actual cash value (pays to replace your possessions after reducing for depreciation) or for replacement cost (which pays the actual cost of replacing items, up to policy limits). In most cases, replacement cost coverage is the smarter option.

If you have any possessions of particularly high value such as art or jewelry, you may want to add a floater to the standard renter’s insurance policy.

If you are living with a roommate or domestic partner, you should inquire how the policy is expected to cover both parties as state regulations and insurance policies may vary.

Renter’s insurance is usually quite inexpensive, so if you are unsure whether to purchase a renter’s policy, talk to an insurance agent and obtain a quote. The low cost of protection may make a smart decision easier.

The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. It may not be used for the purpose of avoiding any federal tax penalties. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite is not affiliated with the named broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information, and should not be considered a solicitation for the purchase or sale of any security. Copyright FMG Suite.

 

Related Content

What If Your Kids Decide Against College?

What If Your Kids Decide Against College?

Rising college costs prompt students to seek alternatives; 529 account funds can be used for other education options.

Put It in a Letter

Put It in a Letter

A letter of instruction provides additional and more personal information regarding your estate.

5 Smart Investing Strategies

5 Smart Investing Strategies

Getting what you want out of your money may require the right game plan.

 

Have A Question About This Topic?







Thank you! Oops!

Required Reading: The Economic Report of the President

The Economic Report of the President can help identify the forces driving — or dragging — the economy.

Mortgages in Retirement

Explore the benefits and drawbacks to paying off your mortgage prior to retirement with this article.

How Financial Professionals Are Compensated

Read this overview to learn how financial advisors are compensated.

View all articles

What Is My Life Expectancy?

Estimate how many years you may need retirement assets or how long to provide income to a surviving spouse or children.

My Retirement Savings

Estimate how long your retirement savings may last using various monthly cash flow rates.

What Is My Current Net Worth?

Use this calculator to estimate your net worth by adding up your assets and subtracting your liabilities.

View all calculators

Investment Strategies for Retirement

Investment tools and strategies that can enable you to pursue your retirement goals.

An Inside Look at Retirement Living

A number of questions and concerns need to be addressed to help you better prepare for retirement living.

Long-Term-Care Protection Strategies

The chances of needing long-term care, its cost, and strategies for covering that cost.

View all presentations

Retirement Accounts When You Change Your Job

This video discusses issues related to your retirement accounts when you move on from your job.

18 Years’ Worth of Days

The average retirement lasts for 18 years, with many lasting even longer. Will you fill your post-retirement days with purpose?

Are Alternative Investments Right for You?

With alternative investments, it’s critical to sort through the complexity.

View all videos