Renters Insurance in Roseville: What $15 a Month Actually Covers

Most renters we talk to in Roseville, Rocklin and Sacramento either do not have renters insurance or have a policy their landlord made them buy without ever reading it. Both groups are usually surprised by two things: how much a basic policy covers, and how little it costs. Here is a plain look at what you get for roughly the price of a couple of lunches a month.

First: your landlord's policy does not cover your stuff

Your landlord insures the building. If a kitchen fire damages the walls and cabinets, that is their claim. Your couch, laptop, clothes, bike and TV are not on their policy at all, and neither is your liability if the fire started on your stove. That gap is exactly what renters insurance fills.

What a typical renters policy covers

A standard renters policy (called an HO-4) has four main parts:

1. Personal property. Your belongings, at home and usually away from home too. Stolen from your car, your gym locker or a hotel room? Typically covered, subject to the deductible.
2. Personal liability. If someone is hurt in your apartment, or you accidentally damage someone else's property (your bathtub overflows into the unit below), this pays for the damage and your legal defense. Common limits are $100,000 to $300,000.
3. Loss of use. If a covered loss makes your place unlivable, this pays for a hotel, extra meals and the difference in rent while repairs happen. In a tight rental market like ours, this part alone can be worth thousands.
4. Medical payments to others. Small, no-fault coverage for a guest's minor injury, usually $1,000 to $5,000, which often keeps a small accident from turning into a lawsuit.

Covered causes of loss generally include fire and smoke, theft, vandalism, windstorm, and sudden water damage like a burst pipe or a washing machine hose that lets go.

What it usually does not cover

• Flood and earthquake. Both need separate policies or endorsements. In the Sacramento Valley, flood is worth a real conversation if you are near the American River or in a low-lying area.
• Gradual leaks, mold and pests. Insurance is for sudden accidents, not maintenance problems.
• High-value items above sub-limits. Jewelry, watches, collectibles and sometimes firearms or cameras have caps on theft, often $1,000 to $2,500. If you own an engagement ring, it should be scheduled separately.
• Roommates' belongings. Unless they are named on your policy, their things are not covered. Most of the time each roommate should carry their own.
• Business property. If you work from home, a company laptop is your employer's problem, but your own business equipment may need an endorsement.

So what does it cost here?

For a typical one or two bedroom apartment in the Roseville area with $20,000 to $30,000 of personal property, $300,000 of liability and a $500 or $1,000 deductible, renters policies commonly run somewhere around $12 to $25 a month. Your actual price depends on your ZIP code, building type, claims history, the limits you choose and, with many carriers, your credit-based insurance score.

The biggest lever is usually bundling with your auto policy. Many carriers discount the car insurance enough that the renters policy pays for itself, or close to it. If you already have auto insurance, it is worth asking your agent to price both together.

How to pick the right limits

Personal property: Walk through your place and add up what it would cost to replace everything new. People almost always guess low. Furniture, clothes, kitchen gear and electronics add up fast; $25,000 is common even for a modest apartment.

Replacement cost vs. actual cash value: Always ask for replacement cost. Actual cash value pays what your five-year-old couch is worth today, which is not much. Replacement cost pays what a comparable new couch costs. The difference in premium is small.

Liability: We usually suggest at least $300,000. The cost difference between $100,000 and $300,000 is often just a few dollars a month. If you have savings or a good income to protect, consider an umbrella policy, which typically requires an auto policy underneath.

Deductible: A $1,000 deductible lowers the premium, but only choose it if you could comfortably cover that amount on a bad day.

A few things renters get wrong

• Not listing the landlord as an interested party. Many leases require it. It costs nothing and keeps you compliant.
• Forgetting to update when moving. Your policy is tied to an address. Moving from Rocklin to Folsom? Call before the move, not after.
• Not keeping a home inventory. A two-minute video walk-through on your phone, saved to the cloud, makes any claim dramatically easier.
• Assuming a student is covered by parents. Some homeowners policies extend limited coverage to students living away at school, but often not to off-campus apartments or graduates. Check before assuming.

Where an independent agent helps

We are an independent agency, which means we can quote renters insurance with several carriers and pair it with the auto company that gives you the best combined price. We also look at the details people skip, like theft sub-limits, water damage wording and whether your loss-of-use limit would actually cover a month or two of Placer County rent.

If you want a quick quote, have these handy:

• Your address and move-in date
• A rough value of your belongings
• Your current auto declarations page, if you want to check bundle pricing
• Any high-value items you want scheduled

Call 916-878-5160, stop by 1100 Melody Lane, Suite 2004, Roseville, or use the quote form on this site and we will get back to you.

Terry Bagwell Insurance Agency — independent, local, CA DOI License 0D85121.