Renter’s Insurance Cost
As the phrase itself suggests, renter’s insurance is a type of insurance that is targeted at people who reside in rented accommodation and do not own a residence of their own. This kind of insurance extends its over to cover every single item in your possession, even if it is as expensive as a diamond necklace and also includes coverage for personal injuries. There is a misconception in the minds of most individuals that their property is covered by the insurance policy of the landlord.
In reality, the landlord’s policy covers the buildings and may even cover his own property, but the policy does not cover your personal belongings, or the incidence of any injury to your guests in your rented place of residence. Hence, it is most advisable to get a renter’s insurance policy at the earliest. It is of no material consequence whether you are living in a rented condo, house or a co-op. As long as it is rented premises, it would be in your best interest to take a renter’s insurance policy.
The need for renter’s insurance
The cost of the policy may be a meagre $10 to a maximum of $25 per month but it will cover all your possessions including and not limited to your electronic items and gadgets, your priceless books and furniture and fixtures, even the photos and paintings on the walls will be covered in this policy. Per chance, any or all of your worldly possessions are damaged or destroyed; you will be reimbursed to the extent of the limits of your renter’s policy. Even if another individual who is not a member of your family or a guest is injured, or his personal property is damaged while he is in your home, and he sues you, you can take recourse in this policy and claim damages from the insurance company.
Types of renter’s insurance
The monetary value of your possessions, or the lack of it, should not deter you from going in for a renter’s policy because then you can opt for a lower limit on your policy. Also, it may happen that the value of your possessions is more than you may envisage, which may make it advantageous for you to have a renter’s policy. The amount of damages which will be reimbursed under this policy will depend upon the type of coverage you have selected. Conventionally, there are two basic types of renter’s insurance policies; the ACV or Actual Cash Value and the replacement cost coverage. Under the ACV, the current depreciated value of the damaged asset is paid by the insurer while replacement cost policy will pay you the amount of getting a new asset of similar type. Logically therefore, replacement cost policies come at a higher premium because it is worth more since you will be able to replace the damaged asset with something with a brand new.
The scope of coverage
A minimum premium will tend to take care of personal property losses arising due to a myriad of causes like hail or windstorm or an explosion or a fire or lightning damage. Even damage to your personal property due to a malicious act or an act of vandalism or theft is covered by your renter’s insurance. Even smoke or other damage from electrical surges or water-linked destruction from normal home utilities allows you to claim damages under your renter’s insurance.
Benefits of renter’s insurance
Another advantage of renter’s policy is that it covers your living expenses in case the present residence has been extensively damaged. But it is absolutely essential that this aspect be first confirmed with the insurance company before selecting their product as not all companies offer this facility. You also have the benefit of shifting your residence to another rented location, as long as it is within the same state and within the purview of your insurance provider. You need only need to give the information about your intention to relocate, and your new address, so as to enjoy the uninterrupted coverage of your policy.
An important factor to keep in mind, while selecting a renter’s insurance policy, is the amount of deductibles you can afford. This deductible is the amount you will b required to pay prior to being able to claim damages from your insurance company. Normally, deductibles are in the range of $500 to $2,500. But you have the choice about the amount you are comfortable with. The calculation of applicable premium will also depend upon the deductible amount, because the higher the amount of the deductible, the lower the applicable premium payable on your renter’s insurance policy. An ideal way to be eligible for discounts is to take a renter’s insurance policy from the same company where you have your auto insurance or personal insurance policies. Such additional business normally attracts discounts from the insurance provider.