Why do i need renters insurance

why do i need renters insurance

Do You Need Renter's Insurance?

Renter's insurance assures you that you're protected against the damage or loss of personal property

when you rent an apartment or house. Your landlord may have insurance that protects the physical

building in which you reside, but this insurance will not cover your personal property. In fact, it's not at all

uncommon for landlords to require the purchase of renters insurance prior to renting or leasing. This is

prudent for both the renter and the landlord, protecting both from the possibility of lawsuit by alleviating

each other's respective liability.

In determining whether or not you need renters insurance, the questions you need to ask yourself are:

How much would it cost to replace my belongings if they were damaged or stolen? And can I afford to

replace them? Depending on your answer, renters insurance may be an easy choice, providing you with

the protection you need. Either way, it's reassuring to have the peace of mind that comes from being

protected.

Things to consider before purchasing rental insurance:

How Much Coverage? – The amount of renters insurance you choose will have the biggest impact

on price of coverage. It is important to insure against all of your property. Remember, you're not just

insuring against theft. In the case of a fire, for example, you could lose everything.

Deductible – The amount of the deductible premium that you're willing to pay will have a major

impact on the premium costs. The higher the deductible, the lower the cost of home renters

insurance.

Actual Cash Value (ACV) – Type of coverage that will pay for what the item was actually worth at

the time of loss. This basic coverage payout is determined by the cost to replace, minus

depreciation.

Replacement Cost – Type of coverage that will provide for the actual

replacement value of the item with no deduction for depreciation. Although

replacement cost coverage comes at an additional premium, it's usually

worth the relatively small increase

in cost.

    Monitored fire or burglar alarms

Dead bolts on all exterior doors

Auto insurance with that provider

If you own a dog, however, it may add to your premium. Due to liability issues,

some insurers won't even offer insurance if certain dog breeds are owned. This

discrimination is exclusive to certain larger working dog breeds. It's unfortunate

because many of these breeds are good-natured and provide a great deterrent

to theft. Yet, in the eye of the insurer, they're a risk. The insurance companies

that do offer coverage for these breeds, will often do so at a premium.

Flood and Earthquake protection is not commonly included on rental insurance

policies. If you live in an area where these natural disasters are more common,

you may want to purchase an additional rider.

Liability coverage is most often a standard feature with renters insurance. This

can prove invaluable in case of an accident, such as a slip or fall by a guest. It

provides protection against legal claims that you may be obligated to pay, such

as injury, sickness and death. It is, however, limited to the amount of liability

coverage provided by your policy.

In order to avoid any disputes with your insurance company, it's recommended that you take an inventory

of your personal items before purchasing rental insurance. This can be done by video taping or

photographing each room of your house. It is important to keep all receipts for any major purchases, as

well. The above should be kept offsite, in a fireproof safe or safety deposit box.

Fortunately, renters insurance is relatively inexpensive. If you're looking for cheap renters insurance, it is

not uncommon to see policies with premiums that are less than $20 a month. And, thanks to the internet,

you can get a competitive online renters insurance quote with relative ease. Always make sure to go with

a reputable renters insurance company when choosing a policy. This eliminates any surprises should the

Source: www.themoneyalert.com

Category: Insurance

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