Attention Renters – Know The Facts
Your landlord may be sympathetic about a burglary or fire loss but they have no responsibility to pay to replace your personal property. For that you do need renters insurance.
Perhaps you think your belongings are not worth much. Think again. You probably own a great deal more than you think— furniture, clothing, stereo, television, computer, books, jewelry, sports equipment, pots and pans, dishes. Replacement costs for everything could be pretty significant.
Renters insurance provides financial protection against the loss or destruction of your possessions when you rent a house or apartment. Also, it could cover your additional living expenses if you are unable to live in your apartment because of a fire. And just like homeowners insurance, renters insurance also covers you in the event a visitor is injured at your home.
Renters insurance premiums are very reasonable and most renters insurance allows you to pay your premium monthly or annually.
Thinking about traveling? Renters insurance may protect against lost or stolen property while traveling, too. If the airline loses your luggage, you can be sure that you are covered.
There are two types of renters insurance policies you may purchase:
Actual Cash Value – pays to replace your possessions (minus a deduction for depreciation up to the limit of your policy).
Replacement Cost – pays the actual cost of replacing your possessions (no deduction for depreciation) up to the limit of your policy.
Not all renters insurance is the same. Some policies cover more than others and costs for the same coverage may be different from company to company. Make sure that your coverage plan suits your needs.
Where can you start looking for insurance? If you have auto insurance, there is a good chance your insurer may have renters insurance too, and offer you a discount.