New York City Renters Insurance

New York City Renters Insurance – Frequently Asked Questions

How Much do New York City Residents Generally Pay for Rent?

The rent usually depends on how big the apartment is and where it is located. If you were looking for a two bedroom apartment that had an elevator in the building, you are looking at anywhere between $1,200 to $10,000 a month. Visit this site for a full list of apartment prices in New York City.

Why do I need renters insurance if my landlord has his own insurance?
The landlord’s insurance covers damage to the building and the landlord’s property-not your personal property or liability. It does not cover your personal belongings, electronics or anything else you brought into the unit. You need your own insurance policy to protect you and your possessions.

How are prices determined for renters insurance?

Renters insurance is surprisingly inexpensive. Nationally, the average cost for a renters policy is $189 per year, or about $16 per month. That’s because you are not insuring a building. Like all property/casualty policies, the value of your property to be insured and other risk factors are weighed by the insurance company to determine your premium. You may get a discount if you purchase auto insurance and renters insurance from the same company. Your insurance agent or company representative can help you find the best combination of coverage and cost.
 

I have a roommate. Would they be covered by my renters/apartment policy?
If your roommate is listed on your policy as a named insured, they are likely covered. Some companies may limit the number of unrelated residents you can name on a policy, therefore check with your insurance agent. Alternatively each roommate can have their own renters insurance.

 

How can I determine how much insurance I need? As a starting point, you can add up the value of everything you own in your home. Include your clothing, furniture, electronics, and washer/dryer, etc. Make sure your coverage is sufficient to cover the total cost to replace all these items.

 

I do not really have many things to insure. Do I really need renters insurance? Your clothes, linens, sports equipment, video games, stereos and appliances could add up to a substantial amount if you had to replace them all at once. Bigger items like your TV, computers, or furniture would cost more today than when you originally purchased them. With optional replacement cost coverage your policy will pay to repair or replace most of your valuables without deduction for depreciation.

 
 Who decides how much my property is worth?

 The insurance policy language may dictate how losses are to be figured. The common methods are:

  • Actual Cash Value. The replacement cost of the item minus depreciation. For example, a new television set may cost $800. But if your 7year-old TV set gets damaged in a fire, it might have depreciated 50 percent prior to the damage. Therefore, you would be paid $400 for that television set.
  • Replacement Coverage. The cost of replacing an item without deducting for depreciation, but limited to a maximum dollar amount. Today’s cost for a TV set with features similar to the 7-year-old one damaged by fire would determine the amount of compensation.

 

  Does my renters insurance cover my possessions even when I go on vacation?
A. Yes. Generally speaking, renters insurance is a package of insurance coverage that extends to all your possessions no matter where they are-this is referred to as “off premises theft”. If you take a round-the-world vacation and lose a valuable item, as long as the loss is by a covered event or peril, the location does not matter and you’re covered.

Who Needs Renters Insurance and How do I Buy it?

It is very important for those who rent townhomes, condominiums, apartments or single-family detached homes to obtain renters insurance to protect their assets in case of fire, theft or similar mishaps. Apartment and condominium fires occur fairly regularly in many metropolitan areas, and New York City is no exception. A renter’s policy can protect your investments – but you must be able to choose a policy wisely to be sure that all your possessions are covered, and that you don’t purchase too much coverage.

You should contact a local agent in your area that is familiar with this policy and be sure to make an itemized list of everything you own with price estimates, serial numbers, receipts (if available), and purchase dates. Your inventory will help ensure that you purchase the right amount of insurance – not too much or too little. Policies in New York City and the nearby vicinity are surprisingly affordable and can provide the much needed peace of mind to protect your valuables. To start, get a free New York City Renters Insurance Quote to find out how much this coverage will cost.

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