Just like a traditional home insurance policy, renters insurance is designed to protect possessions and the liability of the policy holder. And like a home insurance policy, you will need to select the overall coverage you need. A home inventory is a good way to start this process.
Surprisingly, there are a lot of people who don't even secure any renters insurance for themselves. Could you really replace everything you own in the even of a disaster? Every renter should be insured to cover their personal possessions and even more importantly, for liability coverage. You can't forget that liability within your rental unit is your responsibility. So you need renters insurance to protect your possessions and liability inside your home.
Renter's insurance does not cover the structure - it covers only personal property and liability. As such it is usually much lower in cost than normal home insurance. Higher deductibles can save you money, but you will have to pay more out of your own pocket to replace things.
The Next Step
Do a proper home inventory. Don't go off your memory alone. Walk through your apartment and document each room as you go. When you apply for renter's insurance, it's a good idea to photograph or videotape everything you own. Serial numbers of expensive items are always a good thing to document. That way, if you do have to make a claim, you've got all the details you need. You can even take it a step further and enter the items into a spreadsheet along with an estimate of each item's value.
You Need Liability Coverage
Let's say someone falls or injures themselves while on your property. You may be liable for their injuries and could be responsible for any medical costs. You could be sued for damages if they were injured in your apartment. Your renters insurance policy would help cover the costs of a lawsuit.
Replacement Value vs Actual Value
Consider how things lose their value. Go for the replacement value on items. When the insurance company comes to reimburse you for your damaged or stolen items, you want to make sure you can actually buy the item you want without an out of pocket expense. The value of the property at the time of loss is what a basic policy will cover. This is not always ideal. Always opt for the replacement cost. There's security in that. For example, your 5 year old golf clubs will be replaced with as much money as it would cost for you to purchase a new comparable set. There are sometimes limits on pricey items like jewelry and computers. Check with your provider. It may be a good idea to place these items on a separate policy. Replacement cost is well worth the small amount more it may cost for your policy.
Surprisingly, there are a lot of people who don't even secure any renters insurance for themselves. Could you really replace everything you own in the even of a disaster? Every renter should be insured to cover their personal possessions and even more importantly, for liability coverage. You can't forget that liability within your rental unit is your responsibility. So you need renters insurance to protect your possessions and liability inside your home.
Renter's insurance does not cover the structure - it covers only personal property and liability. As such it is usually much lower in cost than normal home insurance. Higher deductibles can save you money, but you will have to pay more out of your own pocket to replace things.
The Next Step
Do a proper home inventory. Don't go off your memory alone. Walk through your apartment and document each room as you go. When you apply for renter's insurance, it's a good idea to photograph or videotape everything you own. Serial numbers of expensive items are always a good thing to document. That way, if you do have to make a claim, you've got all the details you need. You can even take it a step further and enter the items into a spreadsheet along with an estimate of each item's value.
You Need Liability Coverage
Let's say someone falls or injures themselves while on your property. You may be liable for their injuries and could be responsible for any medical costs. You could be sued for damages if they were injured in your apartment. Your renters insurance policy would help cover the costs of a lawsuit.
Replacement Value vs Actual Value
Consider how things lose their value. Go for the replacement value on items. When the insurance company comes to reimburse you for your damaged or stolen items, you want to make sure you can actually buy the item you want without an out of pocket expense. The value of the property at the time of loss is what a basic policy will cover. This is not always ideal. Always opt for the replacement cost. There's security in that. For example, your 5 year old golf clubs will be replaced with as much money as it would cost for you to purchase a new comparable set. There are sometimes limits on pricey items like jewelry and computers. Check with your provider. It may be a good idea to place these items on a separate policy. Replacement cost is well worth the small amount more it may cost for your policy.
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