Renters Insurance Cost Factors

Renters insurance rates vary by company and by:

What you buy

• Which coverages you buy
• How much coverage you buy
• Which deductible you select

Coverages

Renters Insurance is designed to help protect you from losses.

Losses are occurrences that caused direct physical damage to property or injury to persons, whether covered by insurance or not.

Here are brief descriptions of our Renters Insurance coverages:

Personal Property - Coverage B

This coverage helps protect against losses to:

1. The personal property you have in your home such as your clothes and furniture.
2. The personal property you have with you when you are away from home in many places throughout the world.

Coverage for your personal property may include losses caused by:

1. Fire or lightning
2. Weight of ice, snow or sleet
3. Explosion
4. Aircraft and vehicles
5. Smoke
6. Sudden and accidental tearing or bulging of heating or cooling systems
7. Windstorm or hail
8. Theft
9. Riot or civil commotion
10. Falling objects
11. Vandalism or malicious mischief
12. Sudden and accidental water discharge from plumbing or appliances
13. Freezing of plumbing systems

Loss of Use -- Coverage C

This coverage provides payment for certain losses when your home is damaged and rendered uninhabitable because of an insured loss.

Additional Living Expense

This covers the actual loss incurred for increased expenses over and above what you normally spend for food, shelter and related items for the shortest time required to repair or replace the premises, or for your household to settle elsewhere up to 24 months.

Inflation Coverage

This coverage automatically increases the amount of your insurance coverages on your personal property as inflation changes the cost of living.

The changes are based on the movement of an inflation index and are reflected in the premium at each annual policy renewal.

Tip:

Select State Farm®'s replacement cost coverage to get the most protection for your money.

This coverage provides payment based on the cost to repair or replace the damaged property at the time of loss, if actually replaced.

Personal Liability -- Coverage L

This coverage provides payment for your legal liability up to the limits in the policy for damages because of bodily injury or property damage caused by an occurrence to which this insurance applies.

In addition, it may provide for the payment of your defense against these claims or suits.

Medical Payments to Others -- Coverage M

This coverage pays medical expenses up to the limits in the policy for people who are on your premises with your permission and are accidentally injured.

The coverage also extends to people accidentally injured by your activities.

However, the coverage does not pay for medical expenses for you or members of your family who live with you.

Losses Not Insured

While State Farm's renters policy provides comprehensive coverage, it does not provide coverage for every loss.

All property coverages are subject to the Losses Not Insured provisions of the policy.

Examples of losses not insured include but are not limited to:

1. Water damage caused by flood or underground water.
2. Earth movement including earthquake or landslide.
3. Damage caused by nuclear hazard.

Please refer to the policy for a complete list of losses not insured.

Optional Renters Insurance Coverages

Coverages available for an additional premium include but are not limited to:

1. Identity Restoration.
2. Earthquake damage.
3. Increased business property.
4. Incidental business liability.
5. Increased liability limits.

Personal Articles Policy

This is special worldwide coverage in the amount needed for your valuable possessions.

Personal Liability Umbrella Policy

This is for a million dollars or more of personal liability protection for many situations which may not be covered by your basic insurance.

Other things you should know about our renters insurance policies

Loss Settlement Provisions--Personal Property

Limited Replacement Cost Loss Settlement

Provides payment based on the cost to repair or replace the damaged property at the time of loss, if actually replaced.

Depreciated Loss Settlement

Provides payment based on the cost to repair or replace damaged property less depreciation at the time of loss.

Personal Property Special Limits

While the Personal Property Loss Settlement provisions determine the loss payment on your personal property, it's important that you know that special limits apply to certain types of property.

Coverage for certain types of property has a dollar limit.  Here is a typical list of the types of property that may have “special limits” in a renters policy:

• Money, bank notes, coins (including collections) 
• Property used or intended to be used in business
• Watercraft and equipment 
• Securities, checks, traveler's checks, gift cards, phone cards 
• Trailers (not used with watercraft) 
• Stamps, trading cards, comic books (including collections) 
• Home Computers
• Theft loss of:
  • Jewelry and Furs 
  • Firearms 
  • Silverware and Goldware 
  • Rugs, tapestry, wall hangings

Antiques, fine arts, painting, statuary, and similar articles that cannot be replaced by new articles, and property not useful for its intended purpose, is limited in coverage to its market value. Higher limits on some of these items are available through optional coverages.

This page contains only a general description of coverages and is not a contract. Details of coverage or limits may vary in some states. All coverages are subject to the terms, provisions, exclusions, and conditions in the policy itself and in any endorsements.

Renters Insurance Deductibles

The deductible is the portion of a covered loss that is your responsibility. Although deductibles vary by state, the average renters insurance deductible is typically available in amounts such as $500, $1000 or $2000.

For example, if you had a $500 deductible, you are responsible for $500 of the covered loss.

Generally speaking, higher deductibles lower your premium, but increase the amount of a covered loss that you must bear. Ask yourself how much of a covered loss you are willing to bear in order to save on premium.