For those of us that are renting we should seriously consider renter’s insurance. What exactly is renter’s insurance you may ask? It is a form of insurance, that while not required may very well be the key to your financial well being in the event of a disaster. It may be defined as a specific type of home insurance that protects you against accidents, damages, and other losses that take place in a rented home or apartment. It typically provides coverage for your personal property and for liability for accidents that occur in your home. Your insurance should cover loss or damage due to theft, vandalism, smoke, fire, explosion, windstorm, lightening, and faulty indoor plumbing. Many policies include replacement cost, meaning that you will receive reimbursement that is equivalent to the damaged item(s) instead of just receiving a depreciated percentage.
Many people who rent assume that their landlord has insurance. While it is true that your landlord most likely has insurance on your residence, this insurance normally only covers the actual physical structure. The responsibility for replacing your personal property unfortunately is yours. Renter’s insurance is designed to cover all of your belongings, from clothes, jewelry, to antiques. When adequately figuring out how much personal property you have two heads are always better than one. It is best to sit down with a friend, spouse, or family member, and take inventory of everything you own. This may take some time but is well worth it. Video or pictures of items in your house is also of considerable importance in documenting your possessions. Oftentimes, certain items such as jewelry, computers, or collectibles may need special riders.
To begin your search for a comprehensive renter’s insurance policy you need look no further then the internet. In fact, many insurance websites allow you to complete a form online to get quotes from multiple companies. Be sure also when checking on pricing to look for discounts. Look for quotes from companies that provide multi-policy discounts (home and auto insurance from same company), Security discounts (frequently available for the use of smoke detectors, security systems, deadbolts), or non-smoker discounts (for non-smoking households). Once you have purchased your insurance it is important to keep your list of possessions updated. As you sell items or make new purchases take the time to review your policy. A yearly review of your policy will allow you to adjust coverage and, of course, has the potential to save you money.
Renter’s insurance should be looked at as an investment in your “peace of mind”. While many of us renting may struggle with day to day expenses, renter insurance can protect us from the disasters that life sometimes confronts us with.