Renters Insurance
What is renters insurance?
This type of insurance offers many benefits and protections that tenants are often not privy to. For example, tenants may not be aware that a landlord is only responsible for insuring the actual property against damages, not the contents inside the building. That means that while replacing the roof after a storm may be covered, the damage to your expensive TV resulting from the leaky roof won’t be. Therefore, it is your responsibility to make sure that everything inside of your rental house or apartment is protected.
How much does it cost?
The average cost per month for renters insurance is usually around $15. This, of course, can vary depending on the company you go with, the amount of coverage you have and the area where you live. So, it is in your best interest to invest the small amount per month to insure the thousands of dollars that your possessions are worth.
What do plans look like?
When it comes to the average renters insurance plan, there are a few different options you can choose from. You will choose the amount of coverage and the deductible based upon the value of the possessions you want to protect. Then, each month, you will pay a monthly premium based on the different factors going into your plan.
There are three parts to renters insurance:
- Personal property coverage – This covers the theft, loss or destruction of your personal belongings if you experience damage from a fire, storm or other covered hazard. This protection replaces the items that you use on a daily basis, such as your clothes, appliances and furniture.
- Liability coverage – Liability coverage is part of a standard renters insurance policy and protects you if one of your guests sues you for injuries they incurred while at your home or from damages that are your fault and that affect your neighbors. This coverage can help pay legal expenses, medical bills and any other damages,
- Additional living expenses – This coverage will help you pay for temporary living expenses, hotel bills and restaurants if you are forced out of your home due to unforeseen perils, such as a fire.
Is there anything renters insurance doesn’t cover?
You should also remember that flooding and earthquakes are not included in renters insurance policies. You need to get specific policies to cover those damages. Also, if you have a lot of jewelry or antiques, you should consider getting extra coverage for these items that a normal policy may not cover.
What should I know before purchasing a policy?
Renters insurance is different for every person. It depends upon your age, location and what you are looking to protect. There are two important things to make sure you understand when purchasing renters insurance: what the policy covers and whether that coverage is actual cash value or the total replacement cost.
An actual cash value policy would cover your belongings for what they are presently worth. For example, if you bought a $900 TV five years ago, you will get back what it is worth today, rather than its value from five years ago.
Total replacement cost coverage pays you the dollar amount that it costs to replace a renter’s property today. The premium is slightly higher, but many insurance providers suggest this coverage as it has a better payout if damages occur.
If you have any questions on renters insurance, feel free to comment below and we will get back with you!