Many renters mistakenly believe they don’t need insurance because their landlord’s policy will cover any loss they suffer. Your landlord’s policy will not cover you for damage to your furniture, electronics, and other items you keep in your apartment.
It also will not protect you against liability if someone gets injured. Renter’s coverage does all this and more; for a price that is probably much more affordable than you think.
The first time most people think about insurance is with their first car or home. Usually this is because the law or bank requires us to do so.
Although, insurance is usually not required, it is just as necessary to have. Not only will it protect your personal items, it will also give you help with temporary housing and liability protection such as medical expenses for people on your property or a lawyer if you are sued by someone unintentionally injured by you.
Once you determine your need for renter’s coverage, knowing your options will help you choose the best policy. For example, if the ceiling in your rented property is damaged by wind or hail in a storm, the ceiling will be covered by your landlord.
But if your brand new stereo and TV were damaged by a leak in the roof, the landlord’s protection will not cover you. While the ceiling is being repaired, you will need enough money to immediately find another place to stay.
These are the types of things that would be covered by your renter’s policy. Along with personal property coverage and living expenses, your insurance policy will also cover your liability or damage you cause to others or their property.
For example, a friend comes over to visit and she slips on the ice outside your door. It is the same walkway that is your responsibly to keep clear.
Your friend needs medical attention they cannot afford, so she decides to sue you. Renter’s protection will help you pay for your friend’s medical expenses and a lawyer.
Now that you have decided renter’s insurance is for you, there are some things to consider when purchasing your policy. First is the Dollar Amount of Coverage.
This is a leading factor in the price and coverage. A dollar amount is not placed on each piece of property; instead a fixed amount for all of your possessions will be determined.
Of course, the more coverage you purchase, the higher the price of the policy. Next decide on a deductible.
This would be a leading factor to consider in the cost and how much you are willing to pay out of pocket before your insurance kicks in. Coverage that is subject to the deductible would be everything except liability coverage.
This includes paying for your friend’s medical expenses. The Actual Cash Value or Replacement Cost is also an important factor.
When the insurance company comes to reimburse you for your stereo and TV what they give you is determined by these factors. A basic policy will pay you ACV, which is the value of the property at the time of loss.
But, if you opt for replacement cost you will get an actual replacement. For example, your 5 year old stereo will be replaced with as much money as it would cost for you to purchase a new comparable stereo.
Expensive items prone to theft such as jewelry and guns, only have limited coverage so it is wise to place these items on a separate policy. Replacement cost is well worth the small amount more it may cost for your policy.
Another factor to consider is location and previous claims. If you rent in an area prone to thefts you will probably pay more for your insurance and if you or the previous person or neighbors have had a large amount of claims, this may raise the cost of your policy.
Even if you feel your personal property is not worth enough to insure, the value of having liability coverage is well worth renter’s protection. Remember, as with all insurance policies, check with your agent on specific coverage policies, because each policy can vary between companies and states.
Ignacio Lopez is an accomplished expert in home insurance. He recommends (http://www.lainginsuranceagency.com) for any Home insurance needs.
|
|