Many renters are not aware that they can purchase an insurance policy to protect their possessions. Though, doing so can save you a lot of grief if any unexpected events cause damage to your personal property or you are a victim of theft. If you are considering investing in renters insurance, here are some things you need to know.
Renters insurance covers valuable coverage
Renters insurance covers a wide range of personal belongings, like clothing, household appliances, and furniture. Some policies may also cover electronics and jewelry, but these items may need to be explicitly listed in the policy. Renters insurance policies usually include the following types of coverage:
- Personal liability – Covers any expenses that arise due to bodily injury or property damage to another person that occurs on the covered property.
- Personal property – Covers your own personal property, even if you are not in the insured property.
- Additional living expenses – If you are unable to stay in your rented property due to circumstances related to an insurance claim, your insurance provider will pay for alternative living.
How do renters insurance policies service claims?
If you need to make a claim for a lost or damaged belonging, the way you are compensated varies depending on your policy type. While some policies may provide you with enough money to replace the item, others only provide you with the cash value of the item at the time of its loss. The difference here is that cash value options take into account depreciation of the item, meaning you will often receive far less than it will cost to replace it.
For example, if your bed is damaged by a covered event but is ten years old, you will only receive an amount of money that equals the current value of the bed. This will likely not be enough to fully replace the item. With replacement cost coverage, you will receive enough money to buy a new bed based on the current market.
Renters insurance is affordable
Renters insurance doesn’t have to break the bank, in fact, it is usually very affordable for the average renter. According to Business Insider, the average renter’s insurance policy sits around $180 per year. Your actual cost will depend on a number of factors, including the total volume of coverage you need, where you live, and the deductible you set.
The property owner’s insurance does not cover your possessions
If your property is damaged, lost, or stolen, the landlord’s insurance does not protect you. Their insurance is usually geared to cover the exterior of the physical property, rather than the dwelling that you live in. With renters insurance, you gain the peace of mind that you will have help replacing your property if something bad happens.
Shop for renters insurance
To find a reasonable renters insurance policy, you should review the policy offerings of as many insurers as possible. If you need help finding the right policy, get in touch with Acropolis Insurance. Our team of specialists will give you a customized quote to get you started.