Renters insurance includes three important types of financial protection:
§ Coverage for Personal Possessions
§ Liability Protection
§ Additional Living Expenses
Consider the following to help you choose the right coverage when you are shopping around for renters insurance.
Feel free to contact our office for a no-obligation review of all your insurance needs.
1. Do I need an umbrella liability policy?
If you need a large amount of liability protection, you can purchase a personal umbrella liability policy. An umbrella policy kicks in when you reach the limit on the underlying liability coverage provided by your renters or auto policy. It will also cover you for things such as libel and slander. For about $150 to $300 per year, you can buy a $1 million personal umbrella liability policy. The next million will cost about $75 and $50 for every million after that. Because the personal umbrella policy goes into effect after the underlying coverage is exhausted, there are certain limits that usually must be met in order to purchase this coverage. Most insurers will want you to have about $250,000 of liability insurance on your auto policy and $300,000 of liability insurance on your renters policy before selling you an umbrella liability policy for $1 million of additional coverage.