CANNON AIR FORCE BASE, N.M. -- Due to a recent change in Department of Defense policy, renter’s insurance is no longer included for incoming Air Commandos who choose to live in base housing provided through Balfour Beatty Communities. Because of the potential for severe weather at all Air Force Special Operations Command bases, leadership strongly recommends that housing residents secure a renter’s insurance policy to protect themselves and their belongings.
“Our Cannon Family Housing representatives inform new residents during the move-in process that renter’s insurance is not part of basic allowance for housing and highly encourage them to acquire coverage,” stated Dorothy Molina, BBC manager. “Renter’s insurance protects personal possessions from damage or theft, as well as during natural disasters. It covers the costs of replacing or repairing personal belongings due to unintentional damage, and in many cases protects belongings when members are away from their homes.”
Last May, the High Plains region was hit by a brutal storm that caused flooding in many areas of Clovis and Portales. In fact, 30 Cannon Family Housing residents experienced major water damage. For all of these families, the damage was covered through their renter’s insurance policies.
According to 1st Lt. Christopher Pirog, 27th Special Operations Wing Judge Advocate assistant staff judge advocate, the appropriate amount of renter’s insurance coverage is a personal decision that should be based on the value of one’s personal belongings.
“Renters always want to consider both pros and cons of purchasing additional insurance to protect belongings; determining whether or not they can afford to replace all damaged goods or if deductibles are too high,” he stated.
When deciding what type of policy to get, Pirog noted there are several things to take into consideration:
Will the policy cover all valuables inside the housing unit?
Pirog mentioned that renter’s insurance is not necessarily limited to just what is on the inside of the home. Renters who choose to carry renter's insurance should strongly consider a “content insurance policy” that covers, with some exceptions, things like televisions, computers, furniture and other high-price items in rental units.
Given the option, is a “replacement value” or “actual cash value” policy better?
“In the event of filing a claim, a replacement value policy would reimburse each lost or destroyed item’s value at the time of purchase, which makes saving original receipts highly important,” Pirog said. “An actual cash value policy would reimburse each items depreciated value. These depreciation calculations are complex and can differ by insurer.”
What other things might the policy cover that is beneficial to the purchaser?
“In some cases, renter’s insurance can protect the member from liability issues that might arise during the course of tenancy,” stated Pirog. “Let’s say you have a party and one of your guests sustains an injury in your rental unit – your renter’s insurance policy’s liability coverage may cover the cost of a potential lawsuit or the guest’s medical bills.”
With many companies offering a variety of insurance policies, experts suggest doing research and becoming well-informed. And as with many subscriptions to service, insurance policy purchases create an additional monthly expense; it all comes down to what each individual is willing to pay for peace of mind.
For help answering additional questions or determining what renter’s insurance policy might be best for you, contact the Base Legal Office at 575-784-2211 or the Airman & Family Readiness Center at 575-784-4228.