What is renters insurance?
Accidents happen, and renters insurance can be your best defense against damaging forces and unwelcome incidents that leave you financially strained. Learn why renters insurance is a worthwhile investment, how to determine the amount of coverage you will need and where to compare insurance quotes.
Renters and Insurance
Renting a home can bring a variety of questions and new concerns, especially after you sign your rental agreement. For instance, which responsibilities will fall on your shoulders and what will your landlord take care of? Although rental property insurance taken out by the landlord will cover the building itself, you will need to protect your personal belongings with your own insurance. What is renters insurance, and more importantly, how much will you need?
While renters insurance is not required by law, it is the only way to protect your belongings and provide a safety net should anything happen to your home or guests. A renters insurance policy should cover your personal property in case of theft or damage by forces outside of your control, but it can also cover you in the case that a visitor is unintentionally injured on your property by paying for any lawyer or medical expenses. Although you hope that you will never need to use it, home renters insurance will bring welcome financial relief in the worst case scenario.
A renters insurance policy will include a few standard elements, such as amount of coverage, deductible, replacement cost and location. First, a dollar amount will be assigned to all of your belongings that are to be covered, a deductible will then be determined by the amount you are willing to pay yourself before the insurance can be applied, and then you will decide on the type of reimbursement—the actual cash value of your belongings or the cost of replacing the item with a new, comparable model. Keep in mind that if you live in a neighborhood that experiences more theft than average, your renters insurance rate will be adjusted accordingly.
Finding Renters Insurance
Like many other types of insurance, you can compare policies quickly and easily online. Before you apply for renters insurance online, gather your contact information, general dollar amount of your belongings, the type of heat source and construction of your residence. Most policies will cover a range of unfortunate occurrences, from theft to water damage, but policies can differ between companies and states. Be sure to read the fine print of any renters insurance quote.
Since most policies will not cover floods or earthquakes, you may need to consider some additional coverage if you live in a location that is prone to these events. While some instances will demand an extra expense, you can save money by shopping around online, going with the same insurance company that covers your car or car rental, or tapping into discounts offered through your job or professional associations.