Renters Find Peace of Mind with Insurance
Most homeowners have insurance that covers the loss of their possessions in the event of a fire, theft, or other covered peril. Unfortunately that’s not always the case for renters. Renter’s insurance carries with it many advantages. It covers the loss of personal property due to fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage from plumbing.
Most renters incorrectly assume the landlord’s insurance for the apartment building will cover their possessions. One thing all renters should understand before they sign their lease is that there is no duplication of coverage between a landlord’s coverage and a tenant’s coverage.
Premiums for renter’s insurance are tied to the insured value of your possessions and the size of the deductible, among other factors. The premium will be determined as to how much coverage you sign up for. If you are looking to save money, often the premium cost can be lowered if you get renters insurance from the same carrier that provides you other types of insurance such as your auto insurance.
When looking for renter’s insurance, make sure you understand the difference between replacement coverage as opposed to actual cash value coverage. With replacement coverage, the insurance company pays up to the policy’s dollar amount for what it costs in today’s dollars to replace the items. Actual cash value pays the replacement cost minus the appreciation. Evaluate your possessions in order to help you select the choice that is most suitable for you.
Renter’s insurance also provides for temporary lodging and additional living expenses should a tenant be forced out of their home due to a fire, severe storm or other insured disaster. It covers hotel bills, temporary rentals, and other living expenses incurred while your home is being repaired.
Renter’s insurance is a form of homeowner’s insurance and the same rules apply when you shop for it. Here’s how to buy renter’s insurance:
- Decide how much insurance you need: Add up the cost of everything you would want to replace if it were damaged or stolen.
- Create a thorough inventory list: This will make filing a claim easier. Make sure you record model numbers, dates and places of purchase. Take photographs or make a video of these items and place a copy of the inventory in a safe place away from your home, or email it to yourself.
- Check with the insurance company about deductibles: A deductible is your out-of-pocket cost before the insurance company pays. The higher the deductible, the less you will pay in premiums. Before you agree on a deductible, make sure you have enough money to cover the deductible, should you experience a loss.
- Inquire about discounts: Insurance companies will often offer discounts on renter’s insurance if you have another policy with them.
- Inquire about additional discounts: Some insurance companies stipulate that you can get additional discounts if your apartment meets certain security settings. For example, if your apartment has an alarm system, smoke detectors, or advanced locks, you may receive a discount.
At a cost of $25 per month (which comes down to a few dollars per day), you can guarantee the financial protection of your personal belongings. To speak with a licensed McDougall Insurance professional about our various options for renter’s insurance coverage, please call us at 1-800-361-0941.