Renters Insurance
Renters Insurance is probably one of the most overlooked types of insurance. Although you do not own the house in which you are currently residing, that does not mean your personal possessions inside of that house are of no worth. In fact, most American citizens pride themselves in having “stuff”, which is exactly why renters insurance is a must. In the case of any type of accident, you want to be sure that your belongings are protected. Renters insurance premiums are usually very reasonably priced, making it possible for everyone, even those who believe their budget is too tight, to afford renters insurance.
Benefits
- Protection from fire or natural disaster damages.
- Replacement or repair of stolen, damaged, or destroyed possessions.
- Liability coverage for persons being injured in or around your rented property.
- Liability coverage for individual damages to property.
- Protection for personal property located in a storage unit, or during a move or travel.
There are generally two types of renters insurance, which I have listed below.
Replacement cost coverage – Renter is paid what the item costs in today’s market. Usually 10-15% more than cash value coverage, but the increased prices are of great value if you find yourself in the middle of a disaster.
Cash value coverage – Renter is paid what the item costs minus depreciation. This has a lower premium, but does not pay off as well in the case of an accident.
Noteworthy tips:
- Renters’ personal possessions are not covered under the landlord’s property insurance. Take necessary measures to ensure the whole building, including it’s contents, are protected.
- Review your insurance category limits. Most carriers have a set monetary limit of how much the policy will cover on any one possession, like for example, jewelry.
- Assess your possessions. If the bulk is not of great value, there is no need to waste your money on insurance premiums.
- Beware of land barriers. Some insurance policies state they will only cover possessions in a certain area. This is important to recognize if you move frequently, or store belongings in a separate storage unit.