Your landlord may have insurance on the dwelling, but that coverage usually does not extend to your personal items, what you need to insure on your own.
Insurance companies typically advertise renter’s insurance by stating that your costs will be less than a dollar per day. Those costs, however, come in far lower as there are important factors for you to consider including your location and the personal property value of your assets. The more expensive your assets, the higher your renter’s insurance rates.
What is Covered
Insurance coverage for renters can vary from insurer to insurer, but typically includes coverage for theft, the freezing of the plumbing system, windstorm or hail, and fire and lightning.
Renter’s insurance isn’t comprehensive, which means that not everything is covered. Your business pursuits, particularly your at-home business may not be covered. Property damage and bodily injury are typically not covered, nor is your motor vehicle. Uncovered items are insurable under another type of policy, just not your homeowner’s insurance.
What its Worth
Renters may not fully understand what their personal property is worth and may underestimate its value. Take a close look at everything that you own including your clothing, furniture, your computers and peripheral equipment, jewelry, artwork and anything else you have in your apartment. Thousands perhaps tens of thousands of dollars of assets are present, items you probably would not be able to afford to buy again without the help of renter’s insurance.
Tally your inventory, determining the value of what you own and get enough insurance to cover everything. Keep a list of what you own in a safe place and consider taking photographs of same to ensure that you’ll get the proper credit for what you own.
Ask for Discounts
Your renter’s insurance plan may allow you to claim further discounts. You may need to ask for these, however. Discounts are available for renters that have other insurance including auto insurance and perhaps life insurance. Having a home security device installed and a claim-free history can work to your advantage too.
Lastly, renters should ask insurers if additional coverage can be added such as flood or earthquake coverage. You will also want to choose the right deductible, realizing that you’ll assume some of the cost of your loss beyond your monthly insurance premium.
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