Benefits and Tips on Acquiring Renter’s Insurance

A common misconception among individuals renting an apartment or a home, is that during an emergency their landlord’s insurance will cover their belongs. The truth is that a landlord’s insurance will only cover the building and possibly appliances that they have provided you with. Renter’s insurance is a fairly low cost plan that will help cover the loss of your valuables during an emergency.

Obtaining rental insurance will require you to contact a local insurance carrier. If you have a vehicle that is insured, you should discuss rental insurance with your current provider. Many insurance carriers will offer their clients discounts on fees if they hold more than one policy with their company.

When you are deciding on which type of policies to acquire, you should take into consideration where you live and the weather conditions you may be faced with. Many rental insurance policies do not cover damage from floodwaters. If you live in an area that is prone to flooding, you should contact your insurance agency to determine if additional insurance policies should be purchased. Generally, insurance will cover damages to items that resulted due to electrical problems, smoke, theft, wind, snow, or hail. Many rental insurance policies will also cover water damage to your belongs, provided that the water was a result of a broken utility.

You may also want to research whether your insurance company will offer replacement cost coverage or actual cash value. Replacement coverage will pay out exactly what is costs to have your item replaced. Actual cash value will ensure that you will get back what your item is worth. Although it is better than no insurance, actual cash value will only pay for what the item was worth at the time of the incident.

To properly ensure that you purchased enough insurance to cover all of your personal belongs, you should take an accurate inventory count of your items. It is recommend that you make a detailed list of your items in addition to taking photographs of the items located in your house.

Your rental insurance may have a limit of the available coverage, which determines the amount of money you will receive in a disaster. That is why it is important to properly account for all of your items. When you are meeting with an insurance agent, you can inform them of the amount of coverage you would like your policy to hold. It is important to remember that as your coverage amount may increase, you will also have higher premiums

Keep in mind that if you have a roommate, that is an unrelated individual, it is recommend that you each purchase your own renter’s insurance. Although you live in the same household, their insurance will only cover their items and visa versa.

As with most insurance policies, you are required to pay a deducible. Your rates for rental insurance may depend on where you live and which company you purchase your insurance plan through. Like any type of merchandise or coverage plan you would purchase, it is recommend that you call and around and ask about policies and coverage costs of different companies before you make your final decision.