Understand Renters Insurance and Protect Your Home

Insurance policies can be a bit confusing at times; therefore it is important that you have a good understanding of the main areas of a renters insurance policy so you’re able to make an informed decision.

Get Your Renters Insurance Policy Today

Learn about what is contained in a basic renters insurance policy, the variables that you may not be aware of, and how spending a few extra dollars today can keep you from paying out-of-pocket down the road. You’ll be better equipped to ask the important questions of your insurance agent so they can provide you with adequate coverage to protect your property and yourself.

Whether you live in an apartment, a home, a condo or a townhome, it pays to understand how to choose the best renters insurance policy that fits your budget and lifestyle.

What Does Renters Insurance Do?

A renters insurance policy is very similar to a homeowners insurance policy in that it covers damage to your property caused by things like theft, vandalism, fire, and natural disasters. The main difference is that renters obviously do not own the apartment or condo itself, so the insurance coverage is primarily for any property they do own within the rental unit. This can include everything from your clothing to your furniture to your brand new HD TV.

What Renters Insurance Doesn’t Cover

While being covered for all of those items is great, there are a few things that insurance for a rental property doesn’t cover. Those very valuable items, such as that brand new HD TV, are only partially covered due to maximums on most policies. In addition, there are certain natural disasters that are also not covered by this type of insurance coverage, including earthquakes and floods. In all of these cases, you will need to get something known as a rider, which will require you to pay an additional insurance premium, but it will provide you with the additional coverage that you need.

How Insurance Coverage for Renters Works

Once you decide to get an insurance policy for your rental unit, the first thing you need to do is figure out how much everything in your apartment is worth. This will determine how much coverage you need and how much your insurance premium will be. Next, you’ll need to decide between actual cash value coverage and replacement coverage. With replacement coverage, you’re more likely to get reimbursed for the full cost of the item than the depreciated cost of it. If you find the premiums to be more than you want to spend, consider purchasing it with your auto insurance to get a discount.
Many people neglect to get an insurance policy for their apartment or condo, but just like homeowners insurance, it is the best way to protect your personal property.