Renter's Insurance
by: Wyoming Legal Services - Lander Office
The Basics
Q: What is renter's insurance
A: Renter's insurance is for people who rent their homes. If something happens and all your things are destroyed, this will give you money to help replace them. Some things that can happen are burst pipes, fires, or people stealing from you.
Q: Who buys renter's insurance?
A: It's for people who rent their homes or apartments.
Q: If my stuff is wrecked, will I get money no matter what?
A: No. Most policies will pay you if your things are wrecked by a fire, burst pipes or vandals. They will also pay if your things are stolen.
They may not pay if there is a flood or an earthquake. If you are worried about things see if you can get a policy covering them. Keep in mind that it may cost more.
Before buying, ask for details so you know what you're covered for and what your not. Be sure to read your written policy. Ask questions if you don't understand what it means.
Q: How do I know if I should buy renter's insurance?
A: Ask yourself this question:
If my clothes, stereo, washer, TV, tools, and all the rest of my stuff was destroyed, would I have the money to replace it?
If no, then renter's insurance may be a good idea for you.
Q: Doesn't my landlord have insurance that protects me?
A: No. Your landlord should have insurance that covers the building. But this does not cover your personal things.
Q: If my roommate has insurance, does that mean I'm covered?
A: No. Your roommate's policy will only cover her things. If you both want to be covered, then you must both be on the same policy.
Q: How much does renter's insurance cost?
A: It's cheaper than most people think. The average renter can get insured for a couple of hundred dollars a year. This means you pay about 20 dollars per month, or less.
You can make it cheaper by getting it along with a roommate. It also might be cheaper if you get it from the same place as your car insurance.
Q: How do I get renter's insurance?
A: There is more than one way.
If you have a car, talk to the agent who does your car insurance.
You can also search online for firms that offer renters insurance in Wyoming.
State Farm and Allstate both offer it.
One place to look on the Internet is www.answerfinancial.com. This site can help you find what to buy and where to get it.
Q: What is a claim?
A: If you buy renter's insurance, and your things are destroyed, you will file a claim.
When you file a claim you tell your insurance company how you stuff got wrecked and what was destroyed.
After the claim. the company looks at your policy. They then decide how much to pay you to replace your stuff.
Q: What is a deductible?
A: A deductible is the amount of your own money that you have to pay when filing a claim.
For example, if you made a claim for $1000 and your deductible was $200, then you would have to pay $200 before the insurance company would pay the rest.
Q: How much will my deductible be?
A: It varies and depends on the company you buy it from.
It could be a set amount.
It could be a portion of how much your things are worth.
It could be a portion of what you lost.
Be sure to ask lots of question. Shop around to find a plan that's right for you.
Q: What is an actual cash value policy?
A: If you see this term it means that this is a type of coverage that only pays you what your stuff was worth.
For example, if your 5 year-old computer was stolen, you would get back less than what you paid for it, since the value of a 5 year old computer is less than a new one.
Q: What is a replacement value policy?
A: This is a type of insurance that pays you to replace your lost or damaged stuff with new items. These policies often cost more.
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