Renters insurance is become more popular in recent years because it gives renters security against the loss of their belongings. It protects against damage, theft, and other incidents. As long as the property and the event are covered in the policy, you can get money to replace your things.
Like all insurance, renters insurance is available in a variety of configurations at different price points. In this renters insurance guide, we will cover what you need to know to pick a policy that’s right for you.
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What is Renters Insurance?
Renters insurance protects your personal property in the event of damage, loss or theft when you are renting a property. It also provides personal liability protection if someone is injured in your rental.
What does renters insurance cover? It covers the following:
Personal Possessions
Many people don’t realize how valuable their things are until they need to replace them after a disaster. Renters insurance allows you to calculate the value of your property and get coverage that will protect against things like theft, vandalism, plumbing problems, electrical problems and other common disasters that strike renters.
Liability
Accidents happen. If you or your family accidentally damages someone’s property while they are visiting your home – or accidentally injures them – they could sue you. Renters insurance will help cover those legal costs.
Additional Living Expenses
If a serious disaster strikes your house, such as a pipe bursting and filling the place with water, you will need somewhere to stay. The additional living expenses part of renters insurance can help with those costs.
What are the benefits of renters insurance? The benefits are many. You get the peace of mind that comes from knowing you will have money to replace your belongings if an accident strikes. You also get the benefit of knowing that the insurer will have your back if someone gets hurt in your home and files a lawsuit.
Do You Need Renters Insurance?
The nice thing about creating a renters insurance guide is that it is so useful. Just about anyone can benefit from renters insurance. The cost is relatively inexpensive, especially if you don’t have a lot of expensive things. And if you do have expensive things, this kind of insurance is all the more important.
The average annual cost of renters insurance is around $220 per year, with a monthly premium of between $13 and $26. If a pipe bursts and your apartment floods, is $20 per month worth being able to quickly replace all of your things without a lot of out-of-pocket costs? If so, renters insurance is right for you.
Why is renters insurance important? Because a renters insurance policy protects against the unexpected so you can keep living your life if something goes wrong with your rental.
There are certainly exceptions. Someone with $100,000 in savings who only has $2,000 worth of belongings might not need insurance. But someone with no savings and $5,000 in belongings might have a tough time replacing everything if it’s lost.
If you aren’t sure if renters insurance is right for you, take a moment to calculate the value of your belongings and consider how easy it would be to replace them if they were all lost in an accident. When you add up furniture, beds, TVs, gaming systems, laptops, mobile devices, kitchen appliances, and other things, you may discover that your property is more valuable than you realize.
How to Obtain Renters Insurance
Getting renters insurance is easy. You just need to contact an insurance company and apply for a policy. The insurer will need a list of your belongings and their value so you can determine how much coverage you need. It’s a good idea to photograph or video your things so you have a record to prove their value if you need to file a claim.
Once you know how much coverage you need, you can pick your coverage type. Actual cash value and replacement cost are the two main types. Actual cash value is less expensive but less popular because it only pays what the item is worth at the time of loss. Replacement cost is the more common choice because it pays what it takes to replace the item.
Pick your coverage type and then choose your deductible – what your portion of the cost of replacement is. Deductibles often range between $500 to $2,000. The higher the deductible, the less expensive the policy.
With all your choices made, you can sign the policy agreement with the insurer and start making payments to get your insurance.
How to choose the best renters insurance policy? As with all insurance, it’s best to only pay for what you need. That’s why it’s best to calculate the value of your possessions and only get a policy that covers those costs.
It can help to shop around for renters insurance because you might find a better deal with different insurers. However, you may also find that you can get the best deal if you bundle your coverage with other insurance, such as your car insurance.
The Value of Renters Insurance
Renters insurance for apartments and homes is typically a good idea for most renters. It’s a relatively cheap investment that can make recovering after an accident or disaster much easier. Just taking the time to calculate the value of your possessions can give you a good idea if renters insurance is right for you.
We hope you have found our renter’s insurance guide helpful. Remember,
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