If you are a tenant, you are not protected from loss if items are stolen from your apartment or your home is damaged. You need separate renters insurance, a policy between your insurance company and yourself. Renters insurance is one of the cheapest policies you can buy, offering you the protection and peace of mind that you need. Avoid disaster by obtaining sufficient coverage that will protect you.
Not all renters insurance policies are the same. You need to examine what is covered and shop for your insurance accordingly.
Ask your insurance agent if the full replacement cost of your items are included. Usually, this is not the case — you may need to obtain a rider or a policy upgrade to get better coverage. The replacement cost is just that: it pays for an item that you lost, allowing you to get a new one. That means your 10-year-old television can be replaced with a new set.
Flood and Earthquake Coverage
Two of the more difficult insurance policies for homeowners to obtain are flood and earthquake coverage. Insurers typically cover theft and fire, but they may not cover you for other damage.
While your insurer may provide earthquake coverage directly, flood coverage is typically secured from FEMA through the federal government’s special flood insurance program. Consider this option if you live anywhere near water or might be affected by storm damage.
Moving and Storage
If you have furniture shipped to you or stored for you, that coverage may be included. Usually, you item must be professionally shipped with a bill of lading included. Without such documentation, you will not be covered.
Insurers may exclude certain damage, however, Scratching, marring and breaking may not be covered, only a lost shipment.
What is Covered
Renters insurance coverage will cost you about $15 or $16 per month. However, you can save money by bundling your insurance policies, such as adding it to your auto insurance. When bundled, you may be able to reduce your cost to as low as $4 or $5 per month.
Do you think you can do without renters insurance? Think again. You have a lot to protect and only insurance can provide the help you need in a crisis. Without insurance, you’ll need to depend on the Red Cross, neighbors or friends for assistance, but you’ll still be without the goods you lost during a calamity.