If you do not own the home, you either living at home with Mom and Dad or renting. A renter lives in an apartment, in a condominium, or in a house. The things that you move when you move from home to home are your things, your stuff. Renters insurance protects you from losing everything in the case of a fire, flood, theft, or a natural disaster. Without renters’ insurance you could lose everything when a home is destroyed.
What Is Renters Insurance?
Renter’s insurance is almost always very inexpensive, providing you with coverage and protection against the unexpected. You do not have to pay a lot, for what things you do have; renters’ insurance is almost always very affordable based on the value of what you have in your home. The higher the value of your things, the more coverage you want to have, so your insurance may be slightly higher. Renter’s insurance gives you peace of mind that you will most likely not lose everything that you have worked so hard for.
It replaces the things that you have lost in a disaster, fire, flood, or theft. It can go to work during the day without worrying about anything before you come home. With renters’ insurance your family is protected from bankruptcy and from losing everything that you own. Renter’s insurance, in some instances, even protects you in case someone is hurt while they are visiting with you in your rented property. You do not want to run the risk of being sued, and renter’s insurance can do this for you.
How to Purchase Renters Insurance
For those that don’t know much on renters’ insurance, it is first important to understand the three basic types of protection. Those being personal possessions, liability coverage and additional living expenses. There is also two different types of insurance policies, those being actual cash value and replacement cost. Renters insurance is easy to attain, most insurers that offer homeowners insurance also sell to renters considering they are quite similar to one another. Before purchasing a plan, it is always in your best interest to compare at least three price quotes. You can do this by calling directly or getting it online, and do not be afraid to ask questions. When making this decision it is important to have all questions answered for the most efficient outcome.
One recommended question is to see how you can save money.
How Can I Save Money with Renters Insurance?
As with all insurance, there are ways to save your money based on premiums. The higher your deductible, the more money you may save on your premium and you’ll pay the deductible every time you file a claim. If you use the same insurance company for your car for example, you may be offered a renter’s discount for having another policy as well as your age and if you are a smoker or not.
Think about how much furniture you have. How many clothes you have, televisions, and electronics. How often do you have company and what are the liabilities you are most worried about? What would cost to replace everything that you own is the amount of coverage that you should be looking to purchase. You can raise it anytime in the future if you were to make a few big purchases, or if you had a few more children (meaning you now have even more things). You can get your insurance agent to give you a quote on what it is going to cost to replace the average families items in the home, or you can put a value dollar on it yourself. Just remember, making a listing of the major items and furniture that you own is a good start for the value of insurance coverage you should be looking for.
- Renters Insurance, Insurance Information Institute.