5 Things to Check before Choosing Renters Insurance

Financial Services

Renters insurance is a special kind of property insurance for renters and tenants. Such policies usually cover your belongings and personal liability claims, subject to a few terms and conditions. While renters insurance is not compulsory, many landlords do insist for the same, and it makes sense to take a policy, given that the monthly cost of premiums is not more than what you would pay for an expensive pizza. Below are some of the other things you need to check before choosing a policy.

  • First things first, you need to understand the cost and coverage amount. Renters insurance basically covers certain incidents and situations, and it’s important to comprehend your personal needs. The best idea is to make a list of your inventory and possessions, which will help in estimating the actual cover required. Besides the actual prices you paid for each thing, you need to mark the possible price you can get now.

  • Note that renters insurance should also include liability cover, which protects the policy holder in case someone is injured at the property. Now, the range of cover starts at $100,000, extending as high as $500,000. Check online to know the best apartment renters insurance policies, and you will find many sites, where these policies are compared comprehensively.
  • It’s also important to understand what isn’t covered in the policy. For example, some policies may not cover the damage that’s caused by floods, earthquakes or certain natural calamities. Also, for some of the expensive belongings, you might need to get additional cover, which might increase the costs.
  • There are two kinds of renters insurance – Actual Cash Value and Replacement Cash Value. With an Actual Cash Value policy, all the things including depreciation are used to value the damaged goods. The cost of such policies is much lower, but you won’t get a big amount in your claim. On the other hand, replacement cash value policies offer a price as stated. Basically, the insurance company will pay for the actual cost of the concerned product, according to the current market price.

  • Lastly, you need to check the price of the policy. Check online to find sites, where you can compare the policies side by side. Read the terms and conditions before signing the papers, and talk to the insurance company about filing a claim. Many customers often don’t know much about dealing with claims following an emergency situation.

Get renters insurance right now!