What is Renters Insurance and Do I Need it?
If you don’t own your home, you might not have insurance on your mind. However, you still need to consider what you do have to insure – your belongings and effects. Renters insurance allows you to safeguard your personal property while dwelling in a building owned by someone else.
Doesn’t home insurance cover this?
You might think that your belongings are covered by your landlord’s insurance policy, but that is not the case necessarily. More likely than not, personal effects and building contents are not covered in insurance plans chosen by landlords and property owners. Their insurance will cover what they themselves own – the land and the structure, not your stuff.
So, if there is a fire or you experience a robbery, you can’t look to your landlord to cover what was lost. Your own renters insurance is what will cover you in such a case.
Some rental properties require that their tenants have renters insurance. Even if this is not a specific requirement in your particular situation, having renters insurance ensures that your belongings are covered, no matter what detrimental occurrences take place where you are renting. You might be surprised when you do an inventory of all you own just how much it is worth.
What you need to know about renters insurance
• Renters insurance is similar to other types of insurance – you select things like deductibles and the amount of coverage you require. So there will be different options at your disposal. Do your research and get a few different quotes just as you would any other insurance. You want to be sure that you are dealing with a broker or company that offers you the coverage you need, at the most competitive rates. Costs and coverage can vary widely.
• What is covered in your policy depends on the issuer, but generally the same things that home insurance covers such as fire, theft and weather damage to name a few. Make sure that you have a clear understanding of what is or isn’t covered by the policy you are considering.
• Earthquakes and floods aren’t generally covered.
• The cost of your renters insurance will depend on the value of what it is that you are looking to insure. So costs will vary widely depending on your belongings.
• Liability coverage is something else to think about. While most renters plan will cover this, ask to be sure. You may also be given options for amount of coverage here.
• Be aware of whether your policy gives cash value reimbursements (known as actual cash value or ACV) or whether it is based on replacement cost. (Learn more about these 2 common insurance terms in this post).
• In certain cases depending on the living arrangement, such as group housing, renters insurance coverage will be rejected. Let your agent know right away the type of living situation you are in.
Renting without any coverage for your belongings? Want to compare prices with what you are currently paying for your renters insurance? Contact us today at 1-855-237-2905 and we’ll be happy to find the best coverage plan for you.
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