Renters Insurance Basics: What You Should Know Before You Buy
While most people are familiar with car insurance, life insurance, and homeowner's insurance, many aren't as familiar with renter's insurance. If you rent your home instead of owning it, you'll want to make sure that you carry renter's insurance at all times. If you're not familiar with this line of insurance, there are some things that you should know. Here's a look at some of the things that you need to think about when you're shopping for renter's insurance.
Understanding the Difference Between Homeowner's and Renters Insurance
For those who are familiar with homeowner's insurance, it's important to understand that it's very different from renter's insurance. Both policies provide you with protection against the loss of your belongings, but renters insurance does not extend liability protection or structural damage coverage. As a renter, your landlord will have liability coverage and structural insurance for the property, so the only thing that you actually need to insure is your personal belongings.
Determining the Value of Your Belongings
In order to get adequate renter's insurance, you have to determine the value of the policy that you need. This means determining how much your belongings are worth. Your insurance agent will advise you to complete an inventory of your home to help you identify this amount. You should work room by room to identify the belongings that you have and how much they are worth. This allows you to determine how much coverage you need for your personal belongings.
Choosing the Type Of Coverage That You Want
When you call an agent to secure renters insurance, you'll be asked about what type of coverage you want. Give this careful consideration. Actual cash value coverage gives you the value of the items at the time of the loss, accounting for aging as well as wear and tear. Replacement cost, on the other hand, gives you whatever it would cost to replace the item with a brand new one.
You'll find that the premiums for replacement cost coverage will be slightly higher, but that's because replacement cost will provide you with a larger cash benefit if you suffer a loss. Consider what you need carefully and choose the coverage option that's right for you.
These are some of the things you should consider if you're getting renters insurance. Reach out to your local renters insurance agent today for more help with choosing the right coverage and value. For more information about other insurance services, contact an insurance agency near you.
