Best Renters Insurance

Finding the best renters insurance may not be exactly what you are thinking. Yes, you want to find insurance with a good, reputable company without paying too much for it. But the “best” insurance is the one that really meets your needs (for a good price). In order for that to happen there are several things you have to know about renters insurance and then you can make application to the specific needs you have.

To begin with, realize that though your landlord will have insurance, you will also need renters insurance. Your landlord’s insurance is primarily for the building or structure in which your apartment or condo is found. What happens, though, if something happens to your stuff in the apartment? Theft, vandalism, storm damage, burst water pipes, etc.? That is why you need renter’s insurance.

You should be aware that earthquakes and floods are not included in the list of causes of damage to your property that insurance will cover (this is also true for homeowner’s insurance). In some areas of the country this is also true for hurricanes. If you live in a place that is prone to these threats, separate insurance is necessary.

One of the biggest concerns you will have in acquiring renters insurance is whether to get coverage for actual cash value of your property or replacement value. When getting a quote, be sure to ask which one is being quoted. Some companies give one by default, others give the other one. The difference between the two is important and definitely affects your premium rates.

Actual cash value will pay for what your property was worth at the time of damage or loss. That might sound right, but what if you have a television set that is five years old. It definitely is not worth what it was when you bought it. Insurance that covers actual cash value will only give you the amount the TV is worth when the claim is filed. Though this coverage is cheaper on a monthly basis, you will have to come up with more money out of pocket in order to replace the item.

That’s where replacement value coverage comes in. This insurance pays for whatever it would cost to replace your lost or damaged property, no matter how old it might be or what it is worth at the time of loss. This coverage does cost more on a monthly basis but you won’t have to come up with any extra money when it comes time to replace your property.

Just in case you have some items that are particularly valuable, say some jewelry, or coins, or artwork, or whatever, don’t assume they are covered by a standard insurance policy. Very often items like this will exceed the cash value of typical policies. It may very well be necessary to take out a special policy rider in order to cover the excess amount needed.

Here are two last things to consider. Renter’s insurance typically includes liability insurance. This feature is often overlooked but is very important as it provides protection for you is someone is hurt or injured and you somehow are found at fault. This is important protection.

Finally, your policy should include a means of providing for a place to live if your present location somehow becomes unlivable. The same event that might damage your property may also prevent you from being able to stay in your apartment or condo. Your insurance should cover the cost of having to temporarily rent another place.

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