Renter’s insurance has become an important part of the expense sheet for any renter, it’s definitely not a type of insurance that should be overlooked. While many continue to be under the impression that landlord’s insurance may cover them, the truth is that it won’t. Renters need to take out renters insurance to protect themselves against natural damage like fire, flood or earthquake, replacement costs of your current possessions and any costs incurred while finding a new place to rent.
Theft, damage from fire, flood or other natural damage of your possessions will not be covered under landlord’s insurance. If you’re living in a high crime area or somewhere that is prone to fires or floods than the best protection is to get renters insurance. You don’t want to be hit by major replacement costs or having to change your location because of theft or fire.
The amount your assets are worth and their replacement costs. The best way to figure out how much everything you own is worth and get an idea of what you actually possess is to write everything down. Note all the big things like electrical items including refrigerators, television sets to computers, as well as the smaller items like books, clothes, CDs, even plants. Receipts will help you determine the value of your possessions and provide proof of ownership. The more information you have, the better prepared you will be when it comes to determining how much renters insurance you need.
The cost of finding a new place to rent can be high, and your renters insurance should cover the costs that may arise should you need to move. Moving is an expensive activity, especially if you have many possessions and need to transport them from one place to another. Up front rent and security payments can quickly drill a hole in your wallet and leave you penniless. Having the protection of renters insurance will ensure that you aren’t going to be as affected by the big costs as those who are not insured. In order to know how much you will need you need to consider the moving costs of transportation, the location you would likely to move to and the costs associated with living there. This information will help you determine how much renters insurance you need when you’re in need.
It’s best to avoid under or over insuring yourself. If you under insure now, then you may incur unnecessary costs when the worst happens. Over insuring yourself on the other hand will set you back now. Consider the chances of damage and the costs to recover from this damage, how much you own and what you will need to spend on replacement costs and what amount you will need in order to move if necessary.