If you do not own a home but rent it, you need renter’s insurance. The homeowner’s policy that the landlord has is not going to provide you with much protection should there by a break in or a fire. It’s up to you to have insurance to protect yourself and your assets. That’s why most renter’s associations recommend that individuals purchase high-quality coverage that fits their needs. However, for this to happen, you need to know what to purchase.
How Much Coverage?
The biggest factor to consider when buying renter’s insurance is the amount of coverage you need. This should represent a fixed amount based on the value of all of your possessions. Liability coverage is often an add-on to such policies or may be included but listed as a separate amount.
What Is the Right Deductible?
A big factor when considering renter’s insurance is the deductible. If something were to happen right now, how much money could you pay out of pocket comfortably before your insurance kicks in? That’s the right deductible amount for you. You’ll need to pay this before any insurance coverage is applied to your loss.
ACT or Replacement Cost?
Next, consider whether or not you will have an ACT, Actual Cash Value, or a Replacement Cost policy. Do you want the insurance company to pay you what the actual cash value of an item may be? This means that the computer’s value, for example, is likely less than what you paid for it. Or, do you want the insurance company to pay you the replacement value of the item lost? This would allow you to buy a new computer at today’s prices.
It’s a good idea to shop around for the renter’s insurance you need. One of the best ways to do this is through a comparative quote from an independent insurance agent. You’ll learn about the right type of renter’s insurance for your needs while being able to compare numerous policies. This is by far the best way for you to find a policy for your needs.