Renter’s Insurance

Every year, there are many disasters – tornadoes, hurricanes, flooding, and more. Fires can happen anywhere. You never know when something could happen to your residence. Therefore, obtaining renter’s insurance is very important. It is amazing how much money it can take to replace personal belongings. If you do not think so, sit down and make a list of what you own and how much it would take to buy it again. You will find the results amazing.

It is a misconception that many think that the property owner’s insurance will cover a tenants’ contents. This is not the case – the owner’s insurance covers the structure and certain areas of liability, but it will not include the tenant’s personal property. In fact, they cannot obtain coverage for your possessions.

It is also crucial to review what the various renters’ insurance policies cover. Many people think all renters’ insurances are the same, but that is far from true. Just like car insurance, they can have a varied and wide range of coverage. Review the insurance to see if it “will replace” your valuables and personal property. Some policies include electronics and jewelry but some do not. Take a complete inventory before purchasing or reviewing a renters’ insurance policy before making a decision.

Consider whether the insurance company will offer “actual cash value” (ACV) or “replacement cost coverage” for your belongings. As the name implies, ACV coverage will pay only for what your property was worth at the time it was damaged or stolen. For example, if you purchased a camera five years ago for $700, it would be worth significantly less today. While you could still need to spend about $700 for a new camera, your insurance company will pay only for what the old one was worth, minus your deductible. Replacement coverage can make a big difference.

Here are other items to consider:

1) Additional living expenses: some policies include payments for living somewhere else when events such as a fire or flood happen in a residence.
2) Additional benefits: an example of this is a policy that covers the liability of water-filled furniture.
3) Liability protection: although this is standard with most renters’ policies today, it is a very important item to have if an accident occurs in the residence and the injured party sues you.
4) The amount of the deductible: this can vary from policy to policy. It is important to review “what if something happens” and how the deductible will affect the outcome.

The Internet is a great source of information where you can find not only insurance companies and price comparisons. Call different insurance agents to verify your information. Protect yourself – obtain or review your renters’ insurance policy today.