Renter's insurance is the most reliable roommate you'll ever have. Why? Because it really comes in handy when you're in a jam, legal or otherwise.
Yet, only 40% of renters have policies, versus 95% of homeowners who have home insurance, according to the Insurance Information Institute (III).
If you're one of the 60% who just isn't convinced that renter's insurance is an absolute must, take a look at some hypothetical scenarios that could actually be covered in real life by your renter's insurance policy.
1. Stolen Jewelry
Scenario: You just got married to your college sweetheart - congrats! Unfortunately, your dream honeymoon to Mexico turned sour when your expensive engagement ring got swiped at the beach.
No need to be salty! While nothing can truly replace the sentiment that accompanied the original ring, a comparable one can be provided to you as long as you have the proper coverage on your renter's insurance policy. CFM renters policies include coverage for jewelry up to the amount of $2,500.
Pro Tip: When you sit down with a CFM Insurance agent to go over your renter's policy, make sure they're aware of any jewelry worth more than that standard amount mentioned above. If your jewelry is valued higher than $2,500, it will need to be scheduled as an endorsement to your policy. Otherwise, coverage for your jewels will fall under personal property, limiting the amount you may receive for them in a claim situation.
2. Golfing Gone Wrong
Scenario: You decided to take the day off and hit the links with a couple of friends. While attempting to perfect your backswing, you slice the golf ball to the right, causing it to thump another golfer. Fore!
When the golfer you accidentally injured needs help to afford those pricey medical bills, with the proper coverage in place, your renter's insurance can fly in and save the day. On a CFM renters policy, the personal liability section allows up to a certain amount to cover the medical fees resulting from the accident.
Pro Tip: Tiger Woods didn't become one of the best golfers of all time overnight - he had a little help. Take note and utilize technology to improve your golf game. Apps like GAME Golf, Arccos Golf, and My Pro To Go can help you brush up on the basics of the game and offer tips or complete lessons to help you become a better player.
3. Soaked TV
Fear not, the show must and can go on when you have the proper coverage on your renter's insurance policy. Your TV will be covered and replaced with one of similar like, kind, and quality.
Scenario: You're honoring that prolonged New Year's resolution of going to the gym more, so you're attempting to work out regularly - once a month is good, right? Anyway, while you're on one of your monthly dates with the gym, the apartment above you floods and ruins your beloved big-screen TV.
Pro Tip: Take a proactive approach to protecting your stuff and utilize helpful leak-detection sensors, which can be strategically placed around your pad. Smart sensor kits are capable of quickly detecting small water leaks before they become devastating, large-scale claims. The leak detection devices can conveniently hang out under your sink, behind your fridge, or by the washing machine to monitor moisture levels in those areas. As soon as the device senses an increase in moisture, you'll be notified by an app linked to your smartphone, allowing you to quickly address the issue, saving your belongings from mass destruction. Here are some top-rated water leak detectors to consider.
4. Spoiled Grub
Scenario: You just had the best weekend out with your gang. It was so fun that you ended up crashing at your friend's pad downtown for a couple of nights. When you finally return home, you're (un)welcomed by a stench that resembles a teenage boy's bedroom (sweaty socks galore). Upon further investigation, you find all the groceries you just bought a few days ago spoiled rotten in a now non-functioning fridge. Yuck!
Your renter's policy can't replace your fridge since it's your landlord's - their policy covers that - but it can replace the groceries sitting in it when it stopped working. CFM renters policies cover up to $500 worth of food, without any deductible - score!
Pro Tip: Save your receipts when you go on grocery shopping trips just in case you need them for reference down the road. And don't think we mean carrying every paper receipt around in your pocket (or bunched up in your car's cup holders, if that's your style). Download the app, Shoeboxed, and digitally store your receipts so you can look back at exactly what you bought and how much it cost, should you need that information in a claim situation. This receipt hack may also help you achieve some of those budgeting goals - double score!
5. Off-Premises Goods
Scenario: You finally saved up enough money to buy that pool table you've been thinking about non-stop for months (your dream rec room just wouldn't be complete without it). But your current pad doesn't have enough square footage to house it. So, you rent a storage unit to keep it safe until you find it (and you) a forever home.
Luckily, even though your amazing pool table isn't actually parked at your pad, it can still be covered by your renter's insurance policy under off-premises personal property.
Pro Tip: As soon as you purchase valuable items like this, call your CFM Insurance agent and have them list it on your policy. You'll want to make sure it's covered in a claims situation. It may cost you a little bit extra in monthly premium, but you'll be glad such a high-dollar investment is protected should something happen.
6. Timber Tumble
Scenario: You're startled when you come home from work and find your brand-new patio furniture set and barbecue grill crushed by the giant oak tree in your rental's yard.
If the tree fell from wind or lightning, for example, it can be covered by your renter's policy because it's considered an "Act of God." This insurance phrase is defined as any accident or event not influenced by man, but instead by nature.
Pro Tip: If you notice that a tree has died or poses a risk to your landlord's rental property (or your own), be sure to notify them immediately so they can have it trimmed or taken down completely.
7. Unplanned Relocation
Scenario: A faulty electrical outlet causes your rental house to catch on fire in the night while you're on a weekend hunting trip with the boys. Unfortunately, it's a total loss, and all of your personal property is damaged beyond repair. To make matters worse, your parents live 12 hours away in another city, and you don't want to intrude on your friend's space by crashing on their couch for weeks on end. So where do you go?
Your renter's policy can help with that by reimbursing you for hotel expenses incurred while you're looking for a new place, as long as you have the proper coverage. This beneficial coverage falls under Additional Living Expense (ALE) on a CFM renters policy, so make sure and tell your agent you would like this add-on when you purchase or review your policy.
Pro Tip: Take an accurate inventory of your personal property, update it regularly, and keep it somewhere safe. You can even download an inventory app, like Sortly, if writing things down just isn't your style. This will make for a much quicker, easier claims experience when your adjuster asks for a detailed listing of all your items.
8. Misbehaving Mutts
Scenario: Your usually friendly pooch gets overprotective when a stranger comes up to your front door selling the latest and greatest vacuum cleaner. Next thing you know, they bite, and you're facing legal troubles.
Dog bites are among the most frequent personal liability claims in insurance. While certain kinds of dog breeds are excluded from renters insurance coverage, most canines are covered by a renter’s personal liability protection. In the event your dog bites a visitor, you, the owner, might be liable for any resulting medical bills and damages. When you have personal liability coverage on your CFM renters policy, it should cover those medical costs if a claim is filed against you. But be aware, many insurance companies may elect to cancel personal liability coverage after a dog bite claim is paid, depending on the circumstances.
Pro Tip: If you're thinking about adopting a dog from the local animal shelter, make sure you check with your agent about what dog breeds your insurance company does and does not allow on your policy. If you currently have a dog that falls under the list of prohibited breeds by your policy's underwriting guidelines, be aware that your insurance company may not allow personal liability to be written on your policy. It's simply too risky for them to cover.
Now that you see the significant value of having a renter's insurance policy, make sure you're covered for all of renting's little mishaps.