What is renter’s insurance?

When you rent an apartment or home in Clinton, MS, you do not need to insure the property because your landlord’s insurance policy covers it. You do need to insure your belongings and insure yourself against liability. You can obtain a renters insurance policy from OFS Insurance Agency, LLC to protect your property and your financial future.

Property Coverage Explained

A renters’ insurance policy protects you in two important ways. The policy covers your personal property, such as furnishings, clothes, computers, stereo, TV, etc., against named perils. Named perils means specific unexpected events such as a tornado, thunderstorm, hurricane, fire, etc.
You can typically choose from two types of coverage:

  • Cash value
  • Replacement value

If you choose cash value, you will receive the depreciated value of the damaged item. If you purchased a TV for $500 five years ago, you get reimbursed for the TV’s current value.

If you choose replacement value, you will receive the cost of purchasing a brand new TV. The tradeoff is simple. Replacement value premiums generally cost a bit more than cash value premiums. Your claim would not cost as much to pay off with cash value.

Liability Coverage Explained

Yes, your landlord has liability insurance, but it only covers their liability. If you fall while entering the building and need to go to the doctor for a sprained ankle, their insurance covers it. If your parent visits your apartment and slips in the bathroom, spraining their ankle, your renters’ insurance policy covers the liability and reimburses their medical costs. Your landlord’s coverage does not cover what occurs inside your private domicile – the living quarters you rent from them. Your renters’ insurance policy covers your liability.

Contact OFS Insurance Agency, LLC of Clinton, MS to learn more about renters’ policies and the add-ons you can include to make this insurance work best for you. You need extra coverage if you run a home business or want to have coverage for a hotel when your apartment incurs damage.