Ezekeil Hudson's Insurance Podcast

Understanding Renter's Insurance: Essential Protection and Expert Tips for Unforeseen Events

Ezekeil Hudson Season 1 Episode 4

Are you prepared for life's unexpected twists and turns? Join us for an eye-opening discussion on the importance of renter's insurance, a crucial safeguard that many overlook. We'll share real-life scenarios, like accidental fires and water damage, and explain how renter's insurance can be a lifeline, covering temporary housing and replacement costs. With our expert guest, we'll demystify key terms such as actual cash value and replacement cost value, ensuring you understand the difference between getting reimbursed for the current value of an item versus a brand new replacement. 

But that's not all—this episode also highlights the benefits of additional coverage options, or riders, specifically for high-value items, and how renter's insurance can protect landlords without affecting their own policies. We emphasize the importance of obtaining multiple quotes to secure the best coverage and price, and we'll dispel common myths, revealing hidden advantages that renters and landlords might not have considered. By the end, you'll feel empowered and confident in your ability to make informed decisions about your protection, no matter what life throws your way.

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Speaker 1:

All right, so renter's insurance.

Speaker 2:

I know, I know.

Speaker 1:

Not exactly the most thrilling topic, right, it's probably that thing you shove in a drawer and forget about until your landlord reminds you. But seriously, we're diving into this because that PDF they gave you. Yeah, it's more than just a chore.

Speaker 2:

Yeah.

Speaker 1:

It's about protecting yourself, and we're not just talking about your stuff, though. Come on, who doesn't love a good OLED TV these days? But what if and knock on wood, this never happens. But what if there's a fire? Or, you know, maybe a little too much fun with a water balloon indoors leads to some accidental damage. Things happen. That's where that runner's insurance swoops in, with stuff like liability coverage, additional living expenses, all that good stuff, and to help us really unpack all this, we've got an expert speaker here with us today. They know this stuff like the back of their hand, so get ready to have your mind blown on renter's insurance, because I think we might actually learn a thing or two.

Speaker 1:

Happy to be here, Okay. So one thing that stood out to me in this PDF. They start with this whole scenario, Like remember back in college when you'd leave your bike unlocked outside the library.

Speaker 2:

Oh yeah.

Speaker 1:

Hopefully nobody ever took it. Hopefully Right, but you know it got me thinking. Renters insurance it's not just for folks with like a house full of fancy stuff.

Speaker 2:

Right.

Speaker 1:

It's about that peace of mind, right, exactly that feeling of, ok, I'm covered if something unexpected happens. Yeah, speaking of peace of mind, I mean, have you seen this in action?

Speaker 2:

Oh, absolutely. I had this client, actually a young couple just starting out, and they had a small kitchen fire. Thankfully, everyone was OK.

Speaker 1:

That's good, that's good.

Speaker 2:

But the damage? Oh, it was significant. Oh, no, yeah, they were stressed understandably. But the moment they realized their renter's insurance would help cover a temporary place to stay and, you know, help them replace what was damaged, it was like this huge weight was lifted off their shoulders.

Speaker 1:

Wow.

Speaker 2:

That peace of mind, yeah, priceless, especially when you're dealing with already stressful situations. Especially when you're dealing with already stressful situations?

Speaker 1:

Absolutely yeah. It's like having that backup when life decides to throw a curveball, which, let's be real, it happens to the best of us. Okay, so let's dig into some of the nitty-gritty here. The PDF it talks about actual cash value and replacement cost value. Now, I'm not going to lie. Those sound a little like insurance bingo to me. You could break those down for us. I'm happy going to lie. Those sound a little like insurance bingo to me. You could break those down for us.

Speaker 2:

I'm happy to demystify. Let's picture it You've got this amazing OLED TV Love it. The crown jewel of your living room, Of course. Now say something happens to it. With actual cash value, ACV for short you're getting what that TV is worth today. Factoring in wear and tear, depreciation, so you might end up with a slightly older model.

Speaker 2:

but with replacement cost value rcv you're getting a brand spanking new replacement oh okay, so it's like vintage versus the latest and greatest exactly, and choosing between those two really depends on what you need, what your budget's like, right, are you okay with, you know, maybe getting something used as a replacement, yeah, or do you absolutely need that brand new item? Okay, it's all about you know, finding that balance between what you're comfortable paying and the level of coverage you want.

Speaker 1:

Gotcha. All right, that makes sense. I'm picking up what you're putting down Now. The PDF also mentions these additional coverage options. They call them riders, which, to be honest, makes them sound like something you'd add onto a video game character. Right, like you? Give us an example of when you might actually need one of these writers.

Speaker 2:

Absolutely. So let's say, you're a huge comic book fan.

Speaker 1:

Okay.

Speaker 2:

And you've got this amazing collection of vintage comics.

Speaker 1:

Nice.

Speaker 2:

Safely tucked away in your apartment, of course Of course, yeah. Now those comics. They might be worth more than what your standard personal property coverage would cover.

Speaker 1:

OK.

Speaker 2:

That's where a writer comes in.

Speaker 1:

So it's like adding a superpower to your insurance.

Speaker 2:

Exactly.

Speaker 1:

OK, all right, I like it.

Speaker 2:

It gives you that extra coverage for those really valuable items.

Speaker 1:

Gotcha. So if I have like a prized rubber ducky collection and let's just say for argument's sake it's worth a fortune, Should I be looking into one of these writers?

Speaker 2:

It never hurts to chat with your insurance agent about anything you know unique or high value that you own. They can help you figure out if a writer is something you need.

Speaker 1:

Okay, this is already eye-opening, and I thought I kind of knew a little something about renter's insurance. One thing I did not really think about, though, was the landlord's perspective. I mean, they're usually the ones requiring renters insurance, right?

Speaker 2:

Yeah.

Speaker 1:

So how does it benefit them?

Speaker 2:

Well, it's often a requirement because it benefits both sides. Really, Think of it like this Okay. Renter's insurance acts as a safety net for landlords too.

Speaker 1:

Okay.

Speaker 2:

If something happens in your unit, you know, like some of the scenarios we talked about Right right, it can help cover damages, potentially even liability claims, without putting their own insurance policy at risk.

Speaker 1:

Oh, okay, so it's like everyone's got their own umbrella in a downpour.

Speaker 2:

Precisely.

Speaker 1:

No one's getting soaked.

Speaker 2:

Both you and your landlord are protected. Okay, and that separation, it's crucial.

Speaker 1:

That makes a lot of sense. Okay, so we've established renter's insurance. It's a good idea for renters, for landlords, everybody wins. But the PDF also really stresses getting multiple quotes. Why is that so important? Is it really just about finding the cheapest option? I mean, it's tempting, right. You just want to get it over with.

Speaker 2:

Oh, I totally get it. But trust me on this With insurance it's worth taking a little extra time to compare.

Speaker 1:

Okay, so it's like what? Like finding the perfect apartment.

Speaker 2:

Exactly, you wouldn't just go with the first one. You see, right, right, you compare amenities, location, price, very important. Oh, absolutely. Same goes for mentor's insurance. Don't get stuck on just the premium. You know that monthly payment.

Speaker 1:

Okay, so give us the inside scoop. What else should we be looking at?

Speaker 2:

Deductibles for one.

Speaker 1:

Right, the PDF mentions those. They're important. It's the amount you'd pay out of pocket before your insurance kicks in if you need to make a claim. So like a higher deductible usually means a lower monthly payment, but then if something happens, You're on the hook for more up front Oof. Yeah, that's a tradeoff.

Speaker 2:

Exactly, it's about finding that sweet spot, that balance. Can you afford a higher deductible if something happened tomorrow? That's the question.

Speaker 1:

That's a really good point. It's like saving money each month is great, but then boom, something happens.

Speaker 2:

And you're hit with a big bill you weren't quite ready for. Don't forget about coverage limits too.

Speaker 1:

Coverage limits.

Speaker 2:

That's the maximum amount your insurance will actually pay for a covered event.

Speaker 1:

Okay.

Speaker 2:

Make sure those limits are high enough to actually protect you, you know.

Speaker 1:

So it's not just about having insurance, it's about having enough insurance.

Speaker 2:

You got it. That's why comparing those quotes is key. You can see what different companies offer, how much coverage you get for your buck. Find that Goldilocks policy, you know.

Speaker 1:

Not too hot, not too cold.

Speaker 2:

Just right, yeah, all right.

Speaker 1:

I'm curious, when you first heard about renter's insurance, what came to mind? Honestly, I thought it was just about protecting my stuff, like if my TV got stolen or something.

Speaker 2:

Makes sense. A lot of people think that, but the PDF it touches on liability coverage too, right?

Speaker 1:

Yeah, it does.

Speaker 2:

That's a big one. Liability coverage is there to protect you if someone gets hurt on your property or if you accidentally damage someone else's stuff.

Speaker 1:

Okay, I'm listening. Give me an example.

Speaker 2:

Say a friend's over and they trip on a rug in your apartment and hurt themselves. Oh no, Accidents happen. But in that situation your liability coverage could help cover their medical expenses. Oh wow, potentially even protect you from a lawsuit.

Speaker 1:

No kidding, I hadn't even thought about that.

Speaker 2:

It's like that safety net you don't see, but it's there when you need it.

Speaker 1:

Okay, yeah, that peace of mind, that's huge.

Speaker 2:

Right.

Speaker 1:

The PDF also mentioned something called additional living expenses. What falls under that?

Speaker 2:

Oh, that's a good one. Imagine this, the worst case scenario your apartment's unlivable Fire, flood, who knows, but you can't stay there.

Speaker 1:

Yeah, that would be awful.

Speaker 2:

Additional living expenses coverage helps cover those costs. Think hotel bills, meals, all those essential things you need while your place is being fixed.

Speaker 1:

So, instead of stressing about where you're gonna sleep and living off ramen, you have some help.

Speaker 2:

Exactly, it's all about easing that financial burden during a stressful time.

Speaker 1:

You know it's funny. The more we talk about this, the more I realize how many misconceptions there are about renter's insurance.

Speaker 2:

Oh, there are tons. One I hear all the time is my landlord's insurance will cover it right.

Speaker 1:

Oh yeah, I've definitely heard that one.

Speaker 2:

But here's the thing your landlord's insurance. It covers the building, the structure itself. It covers the building, the structure itself. It's not responsible for your personal belongings or you know those liability claims that might come up from something happening in your unit.

Speaker 1:

So it's not a free for all on their policy.

Speaker 2:

Not at all. Different policies, different purposes and another misconception the whole renter's insurance is way too expensive thing.

Speaker 1:

Yeah, you hear that a lot, so what do you say to that?

Speaker 2:

It's really more affordable than people think we're talking maybe the cost of a couple of fancy coffees a month.

Speaker 1:

Really.

Speaker 2:

For that peace of mind. Come on and honestly, when you think about how much money you could lose if something happened and you weren't covered, yeah, that's a good point. It's a no-brainer.

Speaker 1:

Okay, so we've busted some myths, we've explored the depths of renter's insurance. What would you say to someone listening who's like, all right, I'm sold. How do I actually get started?

Speaker 2:

Music to my ears. Congrats on taking that step to protect yourself.

Speaker 1:

Yeah, because I'm sitting here now like, ok, I need to actually do this, but where do I even begin?

Speaker 2:

Well, the good news is the folks at Hudson Agency. They made it pretty easy Remember that PDF we've been talking about.

Speaker 1:

Yeah.

Speaker 2:

Start there. It lays everything out, all the stuff we just talked about, but nice and clear. And they've got their contact info right on there too, in case you want to reach out for a personalized quote. You know, I have to say, their whole approach very refreshing For sure. No confusing jargon, no trying to upsell you on things you don't need.

Speaker 1:

Just straight talk, good information.

Speaker 2:

Yeah.

Speaker 1:

It's like they actually want us to understand this stuff.

Speaker 2:

Exactly Okay. So you've read through the PDF. You've got a good basic understanding. What's next? Get me with it. Time to shop around, Get those quotes, See what's out there. But and I can't stress this enough don't just focus on that premium price.

Speaker 1:

Right, right, all those other factors.

Speaker 2:

Exactly Deductibles those coverage limits. We talked about any extra options you might need based on your specific situation.

Speaker 1:

Like if I have that super valuable rubber ducky collection.

Speaker 2:

Exactly and you know. If you're not sure what you need, ask.

Speaker 1:

Okay.

Speaker 2:

That's what insurance agents are there for To answer questions, to walk you through things.

Speaker 1:

It's like having a personal shopper for peace of mind.

Speaker 2:

There you go. Yeah, and remember. It's your protection, your choice. Don't be afraid to speak up, advocate for yourself. Make sure you understand everything before you sign on the dotted line.

Speaker 1:

I love that Taking control, being informed, having that peace of mind, knowing you're covered. We've covered a lot of ground today. Any final thoughts for our listeners before we wrap things up.

Speaker 2:

You know just this. Fast forward a year. Maybe everything's been smooth sailing. Maybe life threw a curveball or two your way. Wouldn't you rather be prepared for either scenario?

Speaker 1:

Wow, yeah, that's really putting it into perspective.

Speaker 2:

It is.

Speaker 1:

It's not about expecting the worst. It's about that peace of mind. There you have it, our deep dive into the surprisingly fascinating world of renter's insurance. We debunk some myths, uncover some hidden benefits and, hopefully, most importantly, gave you the knowledge and the confidence to make some informed decisions about your own protection. Remember, it's not just about checking a box. It's about that peace of mind, knowing you're covered no matter what. Thanks for joining us on this deep dive. Until next time, stay curious, stay informed and take good care.