If you’re thinking about purchasing renter’s insurance you have a lot of companies to choose from; but before you pay out your hard earned premium dollars, make certain you are buying a policy that fits your needs. Look for policy flexibility, your capacity to control key elements of your renter’s coverage. Flexibility allows you to make choices; and you can get the coverage you need while keeping your premiums under control. Here are a few things to think about:
Flexible Personal Property Limits-
You should be able to select a personal property limit in an amount that will protect the possessions you actually have. Whether you have fancy designer furniture or sturdy, family hand-me-downs, your personal property limit should be appropriate to your needs.
Flexible Liability Limits-
Make certain your renter’s insurance policy provides personal liability coverage that’s personal to you. Your insurer should allow you to select a liability coverage limit based on your income, financial standing and net worth, those things you stand to lose should someone sue or file a claim alleging your negligence. Look for a renter’s policy that allows you to choose the lower or higher liability limit that suits your lifestyle.
The renter’s insurance policy you purchase should offer a wide range of deductibles. In choosing a higher deductible, you will agree to take on a greater share of any claim you submit for damage to your personal property; but a higer deductible comes with the benefit of a reduced premium.
Coverage For Your Valuables-
If you own valuable items, you should not have to buy a separate policy to protect them. Not everyone owns a diamond ring, media center or other valuable property; and if you don’t, you shouldn’t have to pay a premium to insure them. If you do own high value items, you should be able to add them to your renter’s policy.
Medical Payments Coverage-
Look for a renter’s policy with Medical Payments coverage that will pay a guest’s medical bills regardless of fault. If a visitor gets hurt while on the premises you rent, Medical Payments coverage could help prevent the injured party from filing a lawsuit to recover out of pocket expenses.
Replacement Cost Coverage-
Your renter’s policy should offer optional Replacement Cost Coverage. Many policies pay for damaged personal property on an actual cash value basis, deducting an amount for depreciation from replacement cost before making your claim payment. In the event of a covered loss, an ACV payment may not be enough to replace your damaged or destroyed property.
Earthquakes are rare, so they are not covered by most renter’s policy; but your renter’s insurance company should make it available as an optional coverage if you need it.