About Renters Insurance What You Should Know - Ratinah

Renters Insurance - Many renters can't stop thinking about what happens if there's a fire, someone breaks in and steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; You will be responsible! While your landlord has

About Renters Insurance What You Should Know - Ratinah

insurance that covers the actual building, that coverage does not cover your personal property or liability for injuries that occur in the premises you rent ~ be it an apartment or a house and yard.

If a fire destroys or damages your home, your landlord's insurance will cover the structure. It will not cover any damage or loss of your belongings. Nor will it provide temporary housing costs for you and your family.

You may think you don't own enough personal property to make the insurance costs worth it. You may be wrong! If you sit down and add up the cost of everything you have, you might be in for a big surprise. Consider what you've invested in things like:

  • Furniture and accessories
  • Electronics such as TVs, stereos, computers
  • Small appliances such as microwave, toaster oven, etc.
  • Clothes
  • Artwork such as paintings or prints
  • Dishes, cutlery and cooking utensils
  • Sports equipment
  • Book
  • Jewellery

Can you afford to replace all of these things?

Worse, what would you do if a friend was injured on your property and decided to sue you for medical expenses and more? That's a scary thought, isn't it?

Are you starting to see why rental insurance can be a very wise investment?

The cost of rental insurance is based on several factors:

  • Your insured dollar amount
  • Deductibles
  • Whether you choose to get reimbursed for Actual Cash Value or Cost Replacement (more on that in a minute)
  • Where your rental property is located and the number of previous claims made, not only by you, but also by other people living in the same area.

Let me explain the difference between Actual Cash Value (ACV) and Replacement Cost. ACV is the value of your property at the time the loss occurred. For example, if your television is five years old, its value is much lower than if it was new. The lower number is what you are reimbursed for.

However, if you choose Cost Replacement, you are paid whatever it costs to go out and buy a new TV with similar features. Insuring replacement costs increases your premium amount so it's a good idea to get a quote for ACV and Cost Replacement policies. Then you can decide which option fits your needs and budget.

Another thing to keep in mind is that jewelry, valuable collectibles, and weapons are usually covered under a separate policy or “rider”. If you have any of these items, be sure to tell your insurance agent. You don't want to find out after a disaster that they weren't covered or that they weren't covered for their true value.

One way you can reduce your rental insurance costs is to check with any company that insures your car. If they provide rental insurance, you may qualify for a multi-line discount.

Rental insurance may be worth the investment just for the peace of mind it offers you.

That's About Renters Insurance What You Should Know - Ratinah

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