The Need for Renters Home Insurance
If you are renting an apartment, renters insurance is probably something you have never heard or it’s just something at the back of your mind. While there is no law that requires you to have renter’s insurance, it is still prudent to consider it for your home insurance. This is primarily because, should you lose anything in your apartment, you will have lost it for good. This means that you will have to dig deep in your pockets to replace the lost items. Renters insurance in widely available and it does not cost a fortune.
The cost Aspect in Renters Home Insurance
Most renters will not think about renter’s insurance because of the perceived cost implications. However, contrary to common belief, this type of insurance can cost as little as $200 a year. There are renters who think that they do not have enough items to warrant a renter’s insurance policy. However, if you start to add up on how much it cost you to buy your TV, laptop, furniture, stereo, clothing and jewelry, you will quickly see how much cash is tied up in these things.
The coverage can begin from $125 per year. Ideally, you pay for the value of your property. The higher the value of your personal items the higher the premiums. These policies come with deductibles that you need to pay out of your pocket before the insurance can make a payout. Deductibles can range from $500 to $2000. Larger deductibles attract lower premiums.
Considerations for Renters Insurance
Do I need renter’s insurance?
Many renters assume that their landlord’s policy also covers their losses. However, the landlord cover will only meet the cost of the building repairs. It will not cover you for loss of your personal possessions in the event of theft, fire, vandalism, fire, windstorms, water damage, building collapse and water damage. It is also important to note that, you roommate’s insurance policy will not necessarily cover you if you are not listed. Normally, the insurance provider will only allow for a maximum of two named roommates under a single policy. This further emphasizes the need of getting your own policy cover.
Renters Insurance Policy Options
There are policies which make payouts based on the “actual cash value”. This means they will factor in wear and tear and depreciation. For instance, if you have a 12-year-old stereo, you may not get much for it once depreciation is factored in. The other options is the “replacement value” basis. Under this, the insurer pays for the current cost of buying a new item of the same kind and quality. It is ideal to go for the replacement value option especially for items that depreciate fast.
Determining the Cover Amount
To ensure that you are sufficiently covered, you should take stock of the items you own. You can easily create a home inventory. Draw up a list of things like clothing, furniture. Electronics, utensils, appliances, books and everything else you own. Taking inventory helps you to establish the limits of your cover.
Imagine waking up or getting home one day to find everything gone. In the wake of the increasing crime rates, this can happen. When it does, it pays to have a cushion against the losses you would incur. Renters home insurance covers you against such perils.