One of the most overlooked types of coverage is renter's insurance. Many renters feel that it is unnecessary and an expense that is ultimately not worth it. In reality, if you rent a home or apartment, you should consider renter's insurance. Before writing off getting coverage or shopping for a policy, here are some things you should consider.
There's a Difference Between Actual and Replacement Value
When you are shopping for renter's insurance, you will have a choice between policies that offer replacement or actual value coverage. Knowing the difference could help save you out-of-pocket money if you have to file a claim for lost, stolen, or damaged property.
Actual value means that the insurance company will reimburse you the cost of your items at the depreciated value. This could mean that you will have to chip in to replace items. Replacement value is different in that it gives you the full amount for items that have to be replaced.
Replacement insurance could be more expensive with some insurance providers. If the plans are more expensive, ask about discounts that could possibly save you money.
Basic Coverage Might Not Be Enough
Some insurance providers have caps on how much can be paid out on a claim. Even if you have replacement value coverage, the insurance company could choose to only pay up to the amount covered on your policy. If that is the case, you would be responsible for replacing your items that go beyond that cap.
Check with the insurance company to determine if additional coverage is needed to cover your possessions. For example, some companies offer additional coverage for jewelry and other valuables that pay beyond the base amount from the original policy.
Your Landlord Might Offer Coverage
Check with your landlord to determine if he or she also offers renter's insurance. Your landlord could have a partnership with an insurance company that would help to cover some situations.
Your landlord offering insurance does not automatically mean that you do not need to continue to search for renter's insurance. Ask the landlord for a copy of the policy so that you can determine whether it is enough to fit your needs. If not, contact an insurance provider to explore your coverage needs.
Renter's insurance could offer you the protection needed for your possessions while renting your home. If in doubt about getting coverage, talk to a realtor like Donna Lasater Real Estate & Property Management or insurance agent to learn more about the benefits of getting coverage on your rental property.Share
13 October 2016
Apartment living can be a trial sometimes. Even the best apartment complexes can have problems, such as noisy neighbors. I experienced this firsthand with my newest neighbors. Between their partying and trashy existence, I was ready to go crazy. Late one night when they were being particularly noisy, I started researching my rights as a tenant. I found out I did not have to live with their inconsiderate behavior. As a public service, I decided to help others through this blog with their neighbor problems. Whether you are dealing with a landlord that will not do any repairs or bad neighbors, I can help.