Renters Insurance Gives Peace of Mind

Few renters stop to think about what they will do if all their belongings are destroyed in a fire, or a burglar breaks in and steals their new computer system and stereo, or a visitor slips and falls on their property. The fact is that if you’re a renter, you will be held responsible for replacing your own items or responding to the lawsuit!

Your landlord has insurance, of course, but it only covers the physical structure of the building. His coverage doesn’t include your personal property or your liability for injuries that occur in your rented apartment or house. Also, your landlord’s insurance won’t provide for the cost of temporary housing for you and your family in the event of a fire or natural disaster.

If you think you don't own enough personal property to make the cost of renters insurance worthwhile, you’re wrong! Just sit down and add up the cost of all your personal property. Consider how much it would cost to replace what you have invested in such things as furniture and accessories like bedding and rugs; electronics such as TVs, telephones, computer and stereo systems, and DVD player; kitchen items such as dishes, cooking ware, small appliances, and silverware; clothing and accessories; artwork, tools, musical instruments, and supplies; sports equipment and bicycles; books and other resources; and jewelry.

If you lost all of these items today, how many of them could you afford to replace at one time?

Even worse, what if a visitor were injured on your property and decided to sue you for medical costs or even more?

You can see why renters insurance is a wise investment! But how much does it cost? The rate is based on the dollar amount of coverage you select, your deductibles, the location of the rental property, the number of any previous claims you have made, and whether you choose actual cash value or replacement cost reimbursement.

Actual cash value is the value of your property at the time of loss. For example, if your computer is three years old, its actual cash value would be less than if it were one year old. If you choose actual cash value reimbursement, you will receive less than if you opt for replacement cost, but your rate will be lower.

If you choose replacement cost, you’re reimbursed the amount each item costs to replace. It doesn’t matter how old it is. For example, if you lost your TV, you would receive the amount it would cost you to buy a new TV with features similar to your lost or damaged TV. Choosing replacement cost increases the amount of your premium. Before making a decision, it’s a good idea to get quotes for both types of reimbursement. You should select the option that best fits your needs and budget.

Remember that items such as jewelry, special collections, and guns are usually covered under a “rider” or separate policy. To make sure these kinds of items are covered, be sure to tell your insurance agent about them. Verify before disaster strikes that they are covered for their true value.

When exploring different insurance companies, check to see if your auto insurance company offers renters insurance. If they do, you may be able to reduce the cost of your renters insurance. Many insurance companies offer a discount if you buy more than one insurance product with them.

Even if disaster never strikes, renters insurance is worth the investment just for the peace of mind it offers.