Why Renter’s Need Insurance and How to Choose the Right Policy

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!

Is the Cheapest Type of Car Insurance Right for You?

Is the Cheapest Type of Car Insurance Right for You?Saving money on your insurance premiums is wise. Buying insufficient coverage just to save premium cost is not. Auto insurance coverage is not inexpensive and seems to consistently confuse shoppers. Those few remaining U.S. states that lack an insurance coverage requirement have financial standards that drivers must meet. Often, car owners need more financial assets than those who simply buy adequate insurance coverage in those states that accept no insurance protection.

However, if you are focused on obtaining the cheapest auto insurance available, you have some options. Understand that, in most U.S. states, insurance “follows the car.” Therefore, should you opt for the least expensive type of auto insurance, liability coverage, you may only be fully covered when you are driving your insured vehicle. Should you borrow a vehicle from a friend or family member and suffer an accident, the first line of defense will be the insurance (or lack thereof) on the borrowed car. Should you be deemed “at fault,” however, your personal liability coverage will probably be required to reimburse your friend’s company for paid claims.

The cheapest type of auto insurance coverage is liability. Do not misunderstand this statement, as liability insurance is not inherently “cheap.” Minimum state law typically requires, at least, liability coverage. Individual states determine he minimum limits each driver must carry. Common liability minimum coverages are in the $25,000 per person, $50,000 per accident (regardless of the number of injured persons involved), $10,000 property damage and around $10,000-$20,000 uninsured (or underinsured) motorist coverage.

Although the cheapest car insurance coverage, minimum liability policies are often insufficient for many drivers who have more valuable assets (homes, boats, bank accounts, etc.) to protect than the least expensive insurance can cover. Further, neglecting to purchase collision and comprehensive, e.g., theft, coverage will save you premium dollars. However, should your car suffer physical damage, broken windows or theft, costs to repair or replace your vehicle will come from your pocket and personal funds.

Liability-only coverage will be the cheapest coverage in all U.S. states. However, it may not protect you to the level you want or need. Yet, it will help. Something (liability insurance) is far better than nothing. Even if you seek the cheapest car insurance, shop via the Internet. Good options are often those independent agents with interactive websites that allow you to shop multiple companies and receive several quotes for identical protection.

California Homeowners Insurance Requirements

Know Its RequirementsYour home is most likely your biggest and most valuable asset, and you should have California homeowners insurance to cover any physical damage to your home and any liability you may incur as the owner of that home.

If you have a mortgage on your house in the state of California, or for that matter, in any state, your lender will require you to purchase and maintain homeowners insurance on that home. Even if you have completely paid off the mortgage and own the house outright it is still very prudent to have a California homeowners insurance policy.

In order to qualify for a mortgage every lender will require you to have an insurance policy that will provide adequate protection against any damage or destruction to the property that they are financing. A California homeowners policy should cover all hazards as well as any liability that may occur on the property.

Mortgage companies differ in their requirements over the specific amounts of coverage you must carry, but, for the most part, they want you to carry replacement value and not actual cash value coverage. Replacement value protects the lender in the event that your home needs to be repaired or rebuilt due to a covered hazard. It pays the full cost and not the depreciated cost of the materials needed for repairs or reconstruction. Actual cash value only pays up to the limit of the policy which can be below the current market price for the materials and labor needed to actually restore the home to the same condition as it was in before the damage occurred.

Most homeowners policies in California also cover liability which protects you as the homeowner in the event someone gets injured on your property and sues. While this type of insurance is not mandatory, every homeowner that cares about protecting their house should carry personal liability coverage.

Renters Insurance – Know the Value Of Your Belongings

Shield Belongings with InsuranceRenters Insurance has too big two conviction first is that it’s very expensive, and second is that a lot of the people think that its not necessary. Most of the renters just believe their landlord’s insurance would cover their personal belongings too. But, it will be really rare for any landlord’s policy to extend to property of tenants. To rent an apartment with no insurance is a fairly big risk knowing that without insurance, you will have to look at the amount of replacing your valuable belongings after an event such as theft or fire.

Renter’s insurance will provide you with personal liability coverage to you in the case if others personal property is damaged or if someone is injured in your apartment and sues you. But if in case of any damage to your house due to a loss covered, renters insurance will be covering the additional living expenses when your living elsewhere. In lots of cases, just for few dollars a year you can save your valuables from fire by loss, theft, water damage and wind or other hazards. Take full inventory of your important items and find out how much coverage you’ll need, take a complete inventory of your valuable items.

Choose The Right Policy!

There are few tips to consider when buying your renter’s insurance policy:

  • Dollar Amount Coverage: This is a one of the important factor in the coverage and price. A dollar sum is not determined on each part of property, rather a fixed amount for all of your property will be settled. Of course, the more coverage you purchase, the higher the price of the policy.
  • Deductible: The deductible which is the leading factor is the sum that you need to pay out of your pocket before your insurance company starts to charges in.
  • ACV (Actual Cash Value) or Replacement Cost: The factors such as TV and stereo will be reimbursed by the insurance company for you and what they give you is calculated on these factors. At the time of loss the basic policy will pay you Actual Cash Value, which will be the value of the property. If in case you select for replacement cost you will get an actual replacement cost. Replacement cost is well worth the small amount than which more it may cost for your insurance policy.
  • Previous Claims and Location: You would probably have to pay excess for your insurance company if your placed in an area which is very much prone to thefts. If the neighbors or previous person have had a more amount of claims, they may have a raise in the cost of your policy.

Purchasing a Tailored Home Insurance for Texas Home Owners

For Texas Home OwnersYou love your home and want to protect it by purchasing the best homeowners insurance Texas has available. You begin to compare Texas insurance companies to get the best coverage at the best rates. Since each home is different, getting a policy tailored to fit what you own is very important.

Some families have a pool and others do not. Some live on many acres of land in a rural area, while others live on a small lot and enjoy city living. Some people have a brand new $500,000 home, while others purchased an older home and renovated it. Naturally, the more a home is worth, the more your premium is going to cost because the insurance company is taking on a larger risk. Insurers may insure a homeowner who has a large dog, or some other pet. As you can see, each insured has different possessions they want the insurance company to insure.

Your Texas home and car insurance company will tailor a policy especially for you. Everything you want to insure will be listed on the policy. Be sure to compare insurance quotes from other companies so that you can purchase a policy that is affordable, one that insures your home dwelling and personal property. Your policy will also provide a personal liability coverage and a medical payments home insurance policy coverage that will pay if someone is injured while visiting your home.

These are some important details to look for as you compare Texas homeowner insurance policies when purchasing your own tailored home insurance policy for Texas home owners.