Renters Insurance
This is one kind of insurance that most renters take granted for. It is seen as an added expense that will definitely come out of your monthly paycheck. What most renters do not know is that your landlord’s insurance will not cover personal property. They will only cover the structural damage to the building itself but all your valuable possessions are not protected against loss or destruction.
Renters Insurance protects your computer, stereo, furniture, artwork and other valuables against hazards like fire, smoke, burglary or vandalism and other hazards that are detailed in your policy. Aside from these, Renters Insurance can also protect you against liability lawsuits or medical bills of guests injured in your place. Some policies will even cover your property even while you are traveling should your airline lose your luggage.
As with other kinds of insurance, different companies offer several kinds of policies. Higher premiums will offer more coverage not included in a standard renters policy. You can also ask your agent to customize your policy with more options for you.
There are basically two main types of Renters Insurance that is available for you. The first one is the Actual Cash Value. In this kind of policy, the insurance company will reimburse you the actual cost of the damaged or lost property less the depreciated value. The other kind of Renters Insurance is the Replacement Cost Policy. This type of coverage will reimburse you the full cost or the full cash value of the current market price of lost or damaged items. The premiums tend to be higher in this kind of policy.
Choosing the right type of Renters Insurance will depend on your needs. If you are a house for you and your family, the Replacement Cost Policy will be more practical to get as it offers coverage for everyone’s possession and assets. It will give you the peace of mind knowing that all your things are safe. On the other hand, if you are an individual boarder who lives with other roommates, then you can purchase the first type of coverage which is the Actual Cash Value policy.
Getting a Renters Insurance might be an added cost to you but unforeseeable circumstances do happen. Paying a little more each month will surely go a long way. Do your research and get the best policy available at the least cost. You may ask your insurance agent if you can get a discount if you already have other kinds of insurance from the same company.
