The Ins and Outs of Renter’s Insurance
Most renters have likely not given much thought to the idea of obtaining the best renters insurance available to protect their belongings. Reading this now perhaps means that you’re an exception to the rule. Regardless of whether you own a home or rent it, it is wise to consider coverage that can safeguard your personal items that reside within the home. Here is a little info about good renter’s insurance coverage:
Keep in mind that the typical rental insurance policy is quite inexpensive relatively speaking and can often cost a person less than half a buck a day. One’s premium payments can be easily reduced if one, for example, has certain safety features in his or her home, such as smoke alarms and a quality security system.
What About Landlord Insurance?
The coverage that a landlord will carry will, obviously, benefit the landlord and NOT the tenant in most cases. For instance, it won’t protect your personal items or anything you own that is within the rental unit. If there were to be a fire, for example, the building itself would be protected via a landlord policy, but anything and everything that you as a renter own, such as wardrobe, electronics, art, and so on, would have no protection whatsoever- This is why good renters’ insurance can be so helpful.
Replacement Cost or Cash Value Options
When you are looking to obtain this kind of policy protection, you can opt for coverage that provides protection in the form of actual cash value of each item lost or you can choose coverage that pays out for the actual replacement cost of your lost items. The replacement cost option will mean more costly premiums, but you’ll receive a $1,000 item to replace the $1,000 item lost, as opposed to the actual cash value of the item at the time of the loss- (In other words, depreciation is taken into consideration with “actual cash value” coverage.)
Renters insurance can also provide liability protection for the renter for cases in which a visitor is somehow injured on the premises and then sues the renter. For example, no matter that your home is a rental unit, should your lease agreement state, for example, that you’re responsible for clearing snow from the walkway to your unit and someone gets hurt, you can be liable for the injury, not the landlord. This is how renter’s insurance coverage can be a financial life saver.