Renters insurance is one of the best bargains on the market. Surprisingly, however, statistics show that only about 40 percent of renters have such coverage.
If you think that insurance is something you can do without if you don’t own your own home, you should consider the value of your personal computer, your clothes, your household appliances, your sports equipment and any furniture, art and memorabilia you have.
If it were to stolen or damaged, stolen, or lost during transport, how much would it all cost to replace?
While your landlord no doubt carries property and liability insurance, you can also be sued personally if anyone is insured while in your apartment, or at your door. A renters policy would defend you against such claims to the limits of your policy.
Renters insurance is surprisingly broad: While standard policies exclude floods and earthquakes, they do protect you and your property against a wide range of other unexpected events, including such things as smoke and hail damage, or the consequences of a car or airplane crashing into your rental unit.
A typical renters policy also provides for medical payments in case of personal injury, and might offer compensation for living expenses and temporary housing in cases where you cannot remain in your rental home during repairs. No matter what coverage your landlord may have, it usually does not pay a penny toward damage to your sofa, your big screen television or your other personal possessions.
Far Reaching Coverage
While renters insurance is not a panacea for anything that might befall you, it should help you sleep better at night, whether you’re at home or on vacation. You see, the same policy that would pay for loss, theft or damage to the things in your living room also covers items you carry in your car or take along on vacation.
For only a few dollars each month, you have a “backup plan” that will assure you compensation if your laptop, your skis or your guitar suddenly go missing—no matter where they were when they disappeared.
Just as with any insurance, you should shop for the best prices, and always read the fine print before committing to a specific company or policy. But, you will find that, in most cases, renters insurance is pretty straightforward. It is based on the total valuation of the things you own: Your personal property.
And, except for very unusual or expensive items, like high value jewelry, art and antiques, you don’t have to list items individually in order for them to be covered.
Types of Coverage
Just as will other types of insurance, you have options available for renters insurance. Because all insurance is based on specific risk factors, the price you pay will vary depending on where you live. But ask about the difference between replacement value and actual cash value coverage. One takes into account the age and condition of the things you own, and the other will replace an item, no matter what the current value is.
Your landlord might require you to carry some type of renters insurance, but even if that’s not the case, it’s one of the best decisions you can make if you want to protect yourself and your belongings.0