Smart Guide For Choosing And Comparing Renters Insurance
If you live in a rented property, you might want to consider renters insurance. It’s a special kind of property insurance, which covers the personal belongings and liability claims of the renter/tenant. Renters insurance is not compulsory, but more landlords and homeowners are now insisting for it. In this post, we will talk about the types of policies and things you need to know!
The basics at a glance
So, what does renters insurance cover? Well, almost everything you own! This type of insurance covers your personal belongings of all kinds, although the extent and nature of cover can vary with every company. The damage to goods and belongings can be caused by a number of factors known as perils, such as fire, theft and unauthorized entry. The cover will help in paying for the cost of replacing the goods, clothing and other belongings that have been damaged. Do note that most kind of standard policies may not offer coverage against losses caused by natural calamities like flood and earthquake, for which you might have to take additional cover.
Before you take a policy
There are two kinds of renters insurance available currently. The first one is known as an Actual Cash Value policy, which pays for the actual market price of the damaged products, considering factors like depreciation. Needless to mention, this kind of policy is cheaper and affordable, but if there is real damage, you won’t get a good amount from the claim either. The second option is a Replacement Value policy, which doesn’t consider wear and tear or depreciation for the claim. The insurance provider will pay for the current market price of the concerned product, so that you can replace it. Although expensive, a Replacement Value policy is always a better deal, especially if you have a lot of expensive products and appliances.
For certain things, such as expensive gadgets and jewelry, you might need additional cover beyond the actual standard policy. Also, renters insurance should also cover for liability claims. Let’s say someone was injured while entering the house owing to a wet floor. In such a case, your renters insurance will help in paying for your claim. However, if such incidents are triggered by structural issues, the homeowner’s policy will be considered. Check online to find sites, where you can compare different options, and don’t shy away from asking questions about the extent of cover and other details!