The Benefits of Renters Insurance
If you rent, then your landlord should have insurance coverage on the building. But the landlord’s insurance will not cover your belongings as a renter. Any losses you suffer due to theft, flood or fire is your responsibility. The landlord has a policy to protect the landlord’s belongings and the building. You need renters insurance as a cost-effective way to protect your belongings.
Renters Insurance Coverage
An insurance policy for a renter covers many of the same things as a homeowner’s policy. Basically, your personal items are covered following theft, fire, water damage, and some other acts specified in the policy.
Most of this type of coverage also offers protection against accidental damage you cause to someone else’s property. There is also liability for if you are sued by someone for an injury in your home. This is useful because a person’s medical bills could be astronomical. The last thing you want is to be sued and hit with the bill and have no financial assistance. Your policy might even pay for you to stay somewhere else while your apartment is repaired.
How Much Coverage
You need to get an estimate on the value of your belongings. On average most renters have at least $20,000 worth of belongings, sometimes more. Take an inventory of your belongings and choose a “replacement value” policy. That means the policy pays for new items if yours are damaged. The alternative is a policy that gives you the “fair market value” of used items that are damaged or stolen.
Renters insurance is generally low-cost. There are also some discounts provided by some insurance carriers. You might have access to a multi-policy discount, a home monitoring discount, a retired discount, or a claim-free discount. Ask about discounts before you sign with any insurance company. Contact an insurance agent for more information.