Renters Insurance Policies
Having your own place for the first time is a cause for celebration. The renting of a home can mean the spreading of your proverbial wings or simply that you have made a move into a new city or perhaps have moved on up in the world. With the exception of packing and organizing for the move itself, this is all generally good for most. However, it is also important to keep in mind how you might fare financially should an accident or some event happen that leads to loss in your new place. By obtaining good renters insurance, you can potentially keep you home safeguarded while also saving lots of money over the long term should the unexpected occur.
What is it?
Renters insurance is distinguished from homeowners’ or auto insurance in that this type of policy only covers personal belongings within the walls of your rented home. The landlord usually will have a policy that covers the actual home or apartment structure, but if an accident, fire, or individual destroys any of your personal belongings, then only renters insurance will reimburse you for lost or damaged items.
You may be under the erroneous impression that your possessions are not worth all that much, but you might be smart to ponder the total dollar amount it would take to replace all of it at this moment. Most renters certainly couldn’t scrape up such an amount without busting the bank and/or going into debt. Also, and quite importantly, a renter’s insurance policy can give coverage to you if someone were to injure themselves while inside your apartment and sue. Keep in mind that this coverage is so important there’s a good possibility that the landlord may require that you purchase it.
What it covers
Normally a renter’s policy will cover losses resulting from such things as fire, theft, vandalism, a burst pipe, and severe weather events. However, this policy like others, will likely exclude such natural disasters as floods, hurricanes, or earthquakes. These events must normally be covered by separate policies and, depending on where you reside, could be important to investigate how these additional coverage options could help.
How it works
Renter’s coverage is for those who reside in a dwelling that they do not own. If you own property that you rent to others, the coverage you need is landlord policy rather than a renter’s policy. If you ever need to file a claim, you first have to be sure that you have kept up on your premiums and then you likely will need to pay a deductible. The deductible on your policy is the amount you must first cover before your insurance plan kicks in. Generally, the larger the deductible, the lower the premium will be.
Kinds of coverage
Renters coverage is pretty universal, though there are variations depending on the kind of home in which you reside. The main variance in policies is the payout choices: One type is actual cash that gives you the value for your things minus depreciation. Replacement value policies will normally be more costly, but you get more reimbursement for damages and loss.
The major plus of a good renter’s policy is the ensuring that your belongings are financially protected in the event of some loss. An additional plus is that renter’s coverage is relatively inexpensive, yet very effective in time of need.