The Importance of Renter’s Insurance
One of the many things that first time renters do not realize, is the importance of getting renter's insurance. Many renters wrongly assume that the landlord or property management company is responsible for their belongings in the event of a catastrophic event. Not true, only the actual property will be covered, not your furniture, electronics, clothes, or other personal items.
To protect your belongings from these type of events, including theft, tenants should get renter's insurance. This type of insurance can protect you from all these things, in addition it can cover you for any liability if someone gets injured in your home.
Renter's insurance is very reasonable, normally less than thirty dollars a months, for hundred thousand in liability. You can purchase additional coverage if you have higher value items. When getting a policy, it's important to understand which type of policy to get. There are two types of policies, Cash Value and Replacement Value. The first type Cash Value will only cover the cost that your item is worth, similar to how car insurance only covers the blue book value of your automobile. This type of policy is less expensive, but could be much more expensive to replace any items that you have lost.
The second type, Replacement Cost, will cover the actual replacement cost of the item you have lost. It will give you the amount that you would have to pay to go out and buy the item today.
Different insurance companies have different rates for their insurance policies, some have higher deductibles, but smaller premiums. It is important for you to shop around for the best policy that suits your needs. Many companies offer discounts for bundling other insurances, like car insurance, with your renter's policy.
After you secure rental insurance, you need to go through your home, and make an inventory of all the items you have. Include everything that you would need to replace in the event of a disaster. If you have receipts for the items, keep them in a safe place, it will help if you need to dispute your claim down the road. If you can, it's also recommended to take pictures of your more expensive items.
Renter's insurance is very important for any renter to acquire. It's well worth the minimal expense, and can save you much heartache in the event of a disaster.
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