Although homeownership rates peaked at nearly 70% of U.S. households recently, quite a few Americans are renting. Many are doing so by choice too.
Homeownership isn’t always out the reach of people who rent. Instead, some prefer to have a landlord take care of their property and make the needed repairs and upgrades that come with apartment living.
Unfortunately, renters oftentimes forget one important thing: they need rental insurance.
Yes, if your unit is damaged and your goods destroyed, you could lose everything that you own. With a rental insurance policy in place, you could recoup your losses and move on with your life. Without rental insurance, you may have to hope that the assistance of others will help bring you through and/or find yourself relying on your own savings to replenish your possessions.
What you need to know about rental insurance:
Rental insurance doesn’t cover your dwelling — your apartment complex, townhouse unit or other rental property will be insured by your landlord or management company.
Policies can cover a variety of things — make sure that all of your goods are covered. If you have expensive jewelry, antiques, a coin collection, or anything else of high value, you may need to get a separate policy to cover these items. Check with your insurance agent to find out what is and what isn’t covered.
There are two different pay outs for insurance — some policies will give to you the actual cash value (ACV) of your goods while others offer a replacement cost coverage (RCC) amount. With the latter, you’ll pay more but if your five year old sofa is destroyed, you’ll be given enough money to buy a new one, minus your deduction.
The cost of your policy will vary depending on what you own, where you live, the type of insurance desired, etc. Check with a reputable insurance agent to find out what coverage you need to protect what you own. Don’t go without rental insurance — you could be one disaster away from misery if you are not sufficiently covered.
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