RENTERS INSURANCE PROGRAM
OUTLINE OF COVERAGE
The following outline of coverage is for informational purposes only. This outline does
not change any of the provisions of the insurance contract which is the subject of this
Renters policies include two basic sections. Section I provides protection for your
personal property. The building you live in is not covered. The amount of protection you
choose will depend on the value of the personal property that you wish to insure. Section
II provides protection for you when you’re legally responsible (at fault) for an accident
you have caused. The maximum amounts for the coverages that your policy will provide
are shown on your Declarations page.
A. Personal Property Coverage-Section I
What Is Covered
Your policy will pay for the loss or damage to your furniture and other personal
belongings when caused by the perils listed below:
1. Fire or Lightning
2. Windstorm or Hail
4. Riot or Civil Commotion
8. Vandalism or malicious mischief
10. Falling objects
11. Weight of ice, snow or sleet
12. Accidental discharge or overflow of water or steam from within a plumbing,
heating, air conditioning, or automatic fire protective sprinkler or from within a
13. Sudden and accidental tearing apart, cracking, burning, or bulging of a steam or
hot water heating system, and air conditioning system, or an appliance for heating
14. Freezing of plumbing, heating, and air conditioning systems or automatic fire
protective sprinkler system or of a household appliance.
15. Sudden and accidental damage from artificially generated electrical current
16. Volcanic eruption
Only limited coverage is provided for jewelry, silverware, furs, business property and
other valuables. Please refer to the section entitled “Special Limits of Liability” for a
This deductible is the amount of the loss that you, the policyholder, are responsible for
paying. We will pay for the rest of the covered loss, not exceeding the amount of
coverage shown on the Declarations Page. The deductible that applies to your policy is
shown on the Declarations Page. The deductible does not apply to losses under Section
II, Liability Coverage.
Loss of Use
If you cannot live in your home as a result of a covered loss and you must temporarily
live elsewhere, this coverage pays, for a specified period, for reasonable and necessary
extra living expenses you incur over what you would have normally spend to maintain
your standard of living if no loss had occurred.
Exclusions-What is Not Covered
This policy does not provide coverage for all possible losses. The following are
examples of some of the losses that are NOT covered:
1. Ordinance or Law-expenses which result from enforcement of an ordinance or
2. Loss or damage that an insured intentionally causes
3. Earth movement
4. Water damage
5. Power failure
6. Neglect of the insured to save and preserve property at and after the time of loss
7. War and nuclear hazard
See Section I- Exclusions, for further details.
B. Liability Coverage-Section II
What is Covered
Your policy pays for bodily injury and property damage to another’s property for
which you or a member of your household is legally responsible (at fault). This
includes the cost of defending you or a member of your household in a liability
The policy also pays the necessary medical expenses incurred by persons, other
than you or members of your household, who are injured in an accident that
happens in your home. The Medical Payments coverage does not require that you
be liable for the injury.
Exclusions-What is Not Covered
The following are examples of some liability exclusions:
1. Any loss that an insured intends or should expect to happen
2. Bodily injury to an insured person or property damage to an insured person’s
3. Damage which results from the ownership or use of an automobile and other
types of motorized land vehicles, aircraft, or certain watercraft
4. Liability resulting from the transmission of a communicable disease or arising
out of sexual molestation, corporal punishment, or physical or mental abuse.
C. Cancellation, Nonrenewal, and Increase in Premium
Cancellation and Nonrenewal
You may cancel your policy at any time by writing to us and indicating the date
the cancellation is to take effect.
We may choose to cancel or nonrenew your policy. If you policy is cancelled or
nonrenewed, you will receive advance notice. Some examples of reasons for
cancellation and nonrenewal include, but are not limited to:
1. Failure to pay your premium when it is due
2. Knowingly making a false statement or a material misrepresentation on your
application for your policy
3. A substantial change in the use or occupancy of the premises
Increase in Premium
Conditions that may increase your premium include, but are not limited to:
1. Change of location of your home or premises
2. A general rate increase. This results from the loss experience of a larger group of
policyholders rather than from a loss suffered by an individual policyholder. A
general rate increase applies to many persons in the group, not just those who had
3. An increase in coverage limits
D. Changes in Coverage
A number of situations may change the insurance coverage you have. For example,
you may choose to change the type of coverage you have, increase or reduce your
limits or add optional coverages. These factors are general in nature and do not
represent the only reasons a policy may be changed.
Please contact us with any questions about changes in coverage that you wish to make or
about changes that have been made.
E. Optional Endorsements that American Renters Association Automatically
Includes In Your Policy
Personal Property Replacement Cost Endorsement-Form Number AB4720EC-0891
The Declarations Page states under “Additional Coverages” that your policy has
Replacement Value coverage.
Without this endorsement, you will be paid Actual Cash Value for a covered loss to
your personal property. Actual Cash Value means the cost to replace this item with
another item of similar kind and quality less an allowance for depreciation.
Replacement Cost coverage allows for payment of the loss at full cost to repair or
replace the damaged item. Replacement cost is only paid when you purchase the
replacement item within 180 days after the loss.
An additional premium has been added to your policy.
Amendatory Endorsement Deleting Theft-Form Number AB4991EC-0500
Theft coverage has been deleted and replaced with burglary coverage. Burglary
coverage requires signs of forceable entry to be visible in order for property illegally
removed from your premises to be covered.
A credit has been applied to your policy.
F. Optional Endorsements That May Be Included In Your Policy
Extension of Liability Coverage Endorsement-Waterbeds-Form Number
This optional coverage pays for damage to property of others that results from
sudden and accidental discharge of water from your waterbed. It does not pay for
structural damage which results from the weight of the waterbed; slow, gradual
leakage from the waterbed or damage to the waterbed itself.
An additional premium must be paid for this coverage.