What is Renters Insurance

Free Quote Click Here For Free Renters Policy Quote From Liberty Mutual.

For most people renter’s insurance is the one of the cheapest insurances you can buy. Most typical renter’s insurance policies are around $10-25/month.


 

What is Renter’s Insurance?

If and when disaster strikes, it really doesn’t care whether you are living in rented accommodation or own your own home, fire does not discriminate, and neither do any of the many other problems which can cause you to lose your personal belongings in your own home. Of course, what many people don’t realize is that if there is a fire or some other catastrophe where you live, the property owners insurance will only cover the building as a whole, and not have any bearing on your personal items which may have been damaged or destroyed inside. This is why you ought to seriously consider renters insurance, to protect your personal belongings just in case there is a disaster.

Create a Household Inventory Checklist

Whether you rent or own, you should store, in a safe place, a complete inventory of all the items in your home. We have compiled a home inventory checklistfor you. Or, you can do what I do… I grab the video camera each Thanksgiving (it is an easy to remember date and I am usually home for four days) and I start outside and video everything from the yard to the garage, then work my way inside and film each room. Be sure to open all the drawers and film from different corners of the room. When you do your home inventory checklist this way, move a bit slower than normal. Your final tip – save the film offsite, maybe at your parents or siblings home in case of severe damage to your home.

Free Quote Click Here For Free Renters Policy Quote From Liberty Mutual.

Types of Renters Insurance

There are several different types of renters insurance for you to choose from, and the type and amount of cover you choose really depends on the value of the property which you have. The bottom line is, even if you think you don’t have many personal possessions, by the time you’ve added up the value of your clothes, shoes, your TV, your computer, your kitchen equipment and any music centers, games consoles etc, you’ll probably find that it would cost a few thousand dollars to replace it all, which is why it is important to get it covered – with renters insurance. Go on, just glance around you right now, take into account everything which you can see which is of value, and find out how much it would cost to replace those items – you just might be in for a bit of a surprise.

Renter’s Insurance – Some of The Facts

Renter’s Insurance is vital for your own belongings, your Landlords insurance cover does not include any of your personal possessions, they’re your responsibility so insure them!

You might not realize this, but there are loads of events which can result in you losing your belongings or having them damaged beyond repair:

  • Theft
  • Vandalism
  • Fire
  • Hail or Wind storms
  • Water related damage (maybe the apartment above you had some burst pipes and swamped your TV set)
  • Electrical surges
  • Civil unrest
  • Smoke
  • Falling objects
  • Volcanic eruptions
  • Vehicles
  • Aircraft
  • Ice, snow and sleet

I bet you didn’t realize that you and your belongings were so vulnerable did you?

Renter’s insurance covers the majority of your household items, but if you have anything of specific value you might need to include it with a rider in your policy. These kind of customize your policy for anything which you specifically need cover for – musical instruments, valuable jewelry or antique furniture, that sort of thing. You must mention anything which is of particular value to the insurance company when you arrange your policy.

Renter’s insurance can also be very useful when it comes to personal liability insurance. Picture the scene, your best friend has come to visit your new home, she’s brought you a lovely bottle of wine to celebrate, she just takes a seat on the sofa and smash, the new light fitting that you’ve been busy with all morning falls onto her head – she’s lying on the floor in a pool of blood and you’re facing the possibility of hefty medical bills, not to mention reimbursing her for 3 weeks off work. Public liability insurance can be well worth the extra, even if your DIY skills are normally pretty good.

ACV – vs. – RCC

A very important consideration to take into account when you are organizing your renter’s insurance is whether you should go for the ACV – or “actual cash value” option, or RCC – “replacement cost cover”. If you choose the first option, ACV, the insurance policy will pay you the fair market price of the value of the item at the time of the claim, this takes into account depreciation, so if you have a five year old television, for example, that’s the value you will be paid out for. If, on the other hand, you opt for the RCC option, you would be reimbursed with the replacement cost of a new television. Of course, the premiums are higher for RCC policies, but then again, RCC pays out more dollars for each claim than ACV policies. You need to weigh it all up and see which is the best option for you.

Uninhabitability

Wow, that’ s a pretty big word isn’t it, not easy to say or spell, I wonder whether I’ve made it up, hmm, anyway, uninhabitability is a pretty big deal too. Just imagine that your home was damaged by smoke, fire, water, and it was rendered uninhabitable for a while, where would you go and more importantly, who would foot the bill? Many renter’s insurance policies will cover the cost of temporary accommodation (or a percentage of it) for a limited time period, often up to 12 months, hopefully giving you ample time to get the place sorted.

Reducing Your Renter’s Insurance Premiums

Renter’s Insurance is already generally pretty inexpensive as far as insurance policies go, but often there are ways in which you can reduce your premiums even further. The cost of the premiums does depend on the neighborhood where you live, some are naturally more prone to problems than others, but other things you can do to try to reduce your premiums are:

  • fire alarm systems
  • security alarm systems
  • sprinkler systems
  • dead bolts on all exterior doors
  • security lighting

Some of these things may be down to your landlord to sort out, but if you have any of these things be sure to let your insurance company know about it, you may be eligible for a discount!

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