There is a large variety of insurance policies available to the public and most individuals have come to appreciate the need to protect themselves and their property with some types of insurance. They are especially happy to have that insurance when a disaster strikes and they are able to receive monies to cover various expenses or damages. Renters insurance is one of the products offered by insurance companies that is not well known by some people, but if you are living in a rented house, apartment or other property it is very important for you to have this insurance.
Many people who rent assume that the landlord’s insurance will cover any loss or damage because they are the one who owns the property, but this is not true. The landlord’s insurance covers only what the landlord owns – the building. Some leases will list what is covered under the Landlord’s insurance. If it is not listed, it is not covered. Anything inside your apartment is your responsibility.
Once you decide to get renters insurance, here are a few things to know before actually purchasing a policy:
Types of Renters Insurance
Replacement Value (RV) and Actual Cash Value (ACV) are the two main types of renters insurance. In case of damage, RV will give you the money needed to replace the item lost. For example, if your computer is lost in a fire, the insurance money will give you the money to buy a new computer (not a better one – just one like the one lost). With ACV coverage you will receive the amount of money the item was worth when it was lost. So, again if you loose your computer in a fire, this time you will only receive money for the value of a used computer which will not be enough to entirely pay for a new computer. So why would people buy ACV instead of RV? Cost. Replacement Value insurance costs much more than Actual Cash Value insurance.
What Situations are Covered
When looking at renters insurance coverage be sure you know under what conditions a claim can be made. Renters insurance policies typically cover fire, theft, vandalism, utility malfunctions (plumbing and electricity), weather related damage and a host of other hazards. Typically, floods and earthquakes are not covered and insurance for those would need to be purchased separately. If it is not listed in the policy, it is not covered.
Evaluating the Value of Your Possessions
Before purchasing renters insurance, you need to come up with an inventory list of what you own. Insurance companies have ways of calculating the value of your belongings, but only you know what you actually have. This list should be precise, which implies that you should not take chances because this will cost you in the end. Especially important to list for evaluation are any extraordinary items such as artwork, specialty equipment (such as music amplifiers), musical instruments, jewelry or antiques.
Lump Sum Payments
Whereas some individuals may opt to pay for their insurance covers in monthly installments there are those who prefer paying the premiums yearly in lump sum. When you get renters insurance, just like any other insurance cover, it will be cheaper to pay in lump sum since there are extra charges attached to monthly installments.
Claims Procedure
You will need to have knowledge of what is required should you have to file a claim. This will include details on the exact information requested that should be availed on the spot, the numbers you can use to reach your insurer and the specific individual to address regarding the claim.
Once all your questions have been answered you will be better prepared to make a decision on where to purchase your renters insurance policy. Renters insurance will help when disaster strikes. It’ll give you money to help move on and rebuild in the aftermath. Do not put this off, start shopping for renters insurance today.
For an experienced insurance agent, contact Greg Suggs Insurance Agency at 919-875-8889.
