Reasons to Purchase Renters Insurance
by Gary Bangstad
Industry statistics show that 96 percent of homeowners have homeowners insurance, while only 43 percent of renters have renters insurance. What's going on?
The low percentage of renters who are covered by renters insurance may indicate that renters assume that their landlord's insurance covers the loss of their possessions. Unfortunately, your landlord's policy does not typically cover the loss or damage of your possessions.
Why Have Renters Insurance?
Renters coverage pays you for any losses you may incur while renting a home or an apartment. Such losses may be due to fire, burglary, or accidents.
Like homeowners insurance, renters insurance covers most perils except floods and earthquakes, for which you need a separate policy. Furthermore, renters insurance provides liability coverage for you if anyone is hurt on your property or elsewhere by you, a family member, or even your pet.
In addition to these benefits, renters coverage usually pays your living expenses if you need to live somewhere else because of damage to your apartment.
Getting the Best Value
Fortunately, renters coverage is relatively inexpensive because it covers only your personal property and liability, not the building itself.
As with anything, you get what you pay for. If your policy just reimburses you for your lost belongings at their depreciated value--the actual cash value (ACV)--your premium costs should be very reasonable. However, if you are reimbursed for the replacement value or replacement cost, without a reduction for depreciation, your cost should be higher. Oftentimes, the extra cost may be well worth it.
Finally, your standard renters insurance policy only offers limited coverage for such things as jewelry, fur coats, gold, silver, etc. Therefore, you need to have a floater, a separate policy which fully covers these items, even in cases of accidental loss.
Compare rates and start your free renters insurance quote online for affordable renters insurance.
Filing a Claim Is About How and When
You have a loss. What should you do next?
- Report any burglary or theft to the police--keep a copy of the police report
- Notify your insurance agent promptly--your agent may help you file your claim
- Document your loss--save all receipts from repairs and temporary living expenses and prepare a list of lost or damaged items
- Fill out all claim forms correctly and promptly
- Keep good records--your file should include copies of claim forms, the time and date of communication with the insurance company, and any meetings with repairmen
Now you know. Protect your financial future. Start your free renters insurance quote online now for affordable renters insurance.
Sources
http://www.iii.org/Articles/Can-I-get-insurance-if-I-rent-my-home.html
http://www.iii.org/media/updates/archive/press.736516/index.html
http://www.iinc.org/articles/35/1/Insurance-Checklist---A-Guide-for-Home-Buyers/Page.1.htmlAbout the Author
Gary P. Bangstad, Ed. D., is a freelance writer in the area of business and insurance. Previously, he worked for Midwest Financial Planning LTC, selling insurance and investment products. He has also taught music education at the university level.
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