If you are a renter at an apartment, condo, or private home, then you have probably been wondering whether renter’s need insurance, and if so how to choose the right policy. Renter’s need insurance, and determining the correct policy for your situation is very important. Keep reading to learn the essentials about renters insurance policies.
Why Renters Need Insurance
Statistics from the Insurance Information Institute in New York reveal that renters are twice as likely to be victims of theft as homeowners are. Unfortunately, less than half of renters actually have the policy that they need to protect their belongings. Renters need a policy not only to cover the danger of theft, but also one that provides personal liability coverage for those cases where someone gets injured while at your rental. Even the basic renters insurance policies cover both personal belongings and liability on premises. Many renters make the mistake of assuming that their landlord’s policy will cover their personal contents and liability, but it will not. It you want to be protected, you must get a renters insurance policy.
How To Choose The Right Policy
The right policy for you depends upon the contents that you have in your rental. It is important that you get a good general idea of the total value of your belongings. This can be an approximate value as long as you include everything in the home. You will need to choose either "Actual Cash Value" coverage, which replaces damaged or stolen goods while taking depreciation into consideration, or "Replacement Cost" coverage, which will reimburse you the amount of replacement for stolen items at the current cost. Generally, Replacement Cost will be around 10 percent more costly.
You will also need to choose either "Named Peril" which will explain exactly which risks are included (fire, hurricane damage, and theft for example) and will not include any non-specified risks, or "All Peril" which covers any and all situations in which damage or loss can occur unless they have been specifically excluded.
Regardless of the type of policy you choose, it is vital that you keep yourself protected by getting the renters insurance policy from your agent. This policy will allow you to truly relax and enjoy your home!