An Introduction to Renter’s Insurance Financial Education Program on

An Introduction to Renter’s Insurance Financial Education Program on Insurance Presented by INSERT NAME: Nationwide and the Nationwide frame are federally registered service marks of Nationwide Mutual Insurance Company.

An Introduction to Renter’s Insurance

An Introduction to Renter’s Insurance RISK: WHAT IS IT? Risk the possibility of financial loss

An Introduction to Renter’s Insurance Why is risk important for insurance? Risk is what makes you decide whether or not you need insurance. Risk is what insurance companies measure when determining whether to offer you insurance and how much it will cost.

An Introduction to Renter’s Insurance Risk Factors for Renters Insurance Type of home (apartment, town home, high-rise) Square footage Number of rooms Floor level (if in high-rise) Address (city, state, county) Pets? Proximity to fire station and fire hydrant Business being conducted on premises? Credit rating of policyholder Personal property (including furniture, electronics, high value items, etc.) Special safety features (security, alarms, sprinklers) Prior insurance history (claims filed, etc.) Construction type (brick, frame, etc.) Roof type (shingle, tile, metal, flat, etc) **Amount of coverage required**

An Introduction to Renter’s Insurance What is insurance? Insurance is a legal contract that transfers risk from a policyholder to an insurance provider.

An Introduction to Renter’s Insurance Why do you need renter’s insurance?

An Introduction to Renter’s Insurance The average renter owns over 20,000 in personal property. In the event that something happens to your property, who will have to replace it?

An Introduction to Renter’s Insurance You.

An Introduction to Renter’s Insurance The Components of Basic Renter’s Insurance

An Introduction to Renter’s Insurance What does basic renter’s insurance cover? Most renter’s insurance contracts normally include coverage for the following items, but this can vary by company and state. Check your policy to be sure what is and what is not covered.

An Introduction to Renter’s Insurance What does basic renter’s insurance cover? Personal Property – Coverage for personal items (clothing, furniture, appliances, computers, etc.). Loss of Use – Coverage for when an insured has to move out of the home while repairs are made as a result of damage caused by a covered loss.

An Introduction to Renter’s Insurance Protecting Your Personal Property: Two Options for Renter’s Insurance

An Introduction to Renter’s Insurance # 1: Actual Cash Value Definition: The value of the property lost or damaged at the time of the loss. This method of valuation takes into consideration depreciation based on such factors as: Age of the item Market value Condition of the property at the time of loss or damage.

An Introduction to Renter’s Insurance #2: Replacement Cost Definition: The cost of replacing damaged or destroyed property without deduction for depreciation in the value of the property.

An Introduction to Renter’s Insurance What else does basic renter’s insurance cover? Liability Insurance – Pays for damages the insured is legally obligated to pay due to bodily injury or property damage. Medical Payments – Pays for medical and/or funeral expenses incurred by a person on or off the insured’s property.

An Introduction to Renter’s Insurance Perils Covered by Renters Insurance Fire and lightning Windstorm and hail Explosion Riot and civil commotion Impact from aircraft Impact from vehicles Smoke Vandalism and malicious mischief Theft Falling objects Weight of ice and snow Glass breakage Accidental overflow of water from plumbing Accidental electrical damage to appliances (caused by power surge) *Depending on where you live, hurricanes or windstorms may or may not be covered. Check with an insurance agent to determine if an extra policy is needed to cover these perils.

An Introduction to Renter’s Insurance Perils NOT Covered by a Standard Renters Insurance Policy (You may need to purchase a separate policy!!) Flood Earthquake Act of War Nuclear Detonation *Depending on where you live, hurricanes or windstorms may or may not be covered. Check with an insurance agent to determine if an extra policy is needed to cover these perils.

An Introduction to Renter’s Insurance ADDITIONAL COVERAGES* Jewelry, watches, furs Money, coins, securities, Guns deeds Tools Cameras, camcorders Watercraft, trailers, equipment, motors Silver, gold, pewter Computers Business property * Coverage for these items is already included in the renters insurance policy up to certain limits. For an additional premium, you can increase the limits of these coverages to meet your needs.

An Introduction to Renter’s Insurance LIABILITY COVERAGE Protects you, your family, and anyone under age 21 in your care Protects you against legal claims you are legally obligated to pay for causing bodily injury, sickness, disease or death of others Pays the cost of defending a claim against you Covers damage to the property of others

An Introduction to Renter’s Insurance GUEST MEDICAL PAYMENTS Pays for necessary medical and funeral expenses* Covers first aid expenses of others* *Limited to certain terms, limitations, and exclusions. Check with an insurance agent to find out more about this coverage.

An Introduction to Renter’s Insurance STEPS TO PROTECTING YOUR PROPERTY

An Introduction to Renter’s Insurance 1) Take an inventory 6) Select a provider and apply 2) Compare quotes Next Steps 5) Check for discounts 3) Select your coverage 4) Ask about disaster coverage in your area

An Introduction to Renter’s Insurance Practice Shopping for a Policy http://www.nationwide.com