As a renter you’ve made the right decision purchasing “Renters Insurance”, now you need to know how to make your insurance work for you. Like a homeowners insurance policy, you can fit your renter’s insurance to suit your particular needs. Remember renter’s insurance is cheap, so don’t skimp. Cover your assets.
You, like a homeowner, could possibly face some sort of disaster. This could leave you scurrying for some sort of restitution for lost items. A renter’s insurance policy is what would provide this, so building it to cover your valuables is what you need.
There’s a lot of different riders( additional coverage) you can add to your renter’s insurance policy. These cover certain items which your renter’s insurance alone doesn’t cover, like the higher value cost of replacement might be more than the renter’s policy covers alone. So be selective and let your agent walk you through these choices.
Something you can do before you talk with an agent is, decide on what you want your policy to cover. Robbery, fire, smoke, tornadoes, vandalism, snow, water leaks or electrical? Be sure you acquaint yourself with what is available for your area. Different types of disasters could be experienced more often in different states, such as earthquakes and floods. Asking your insurance agent to explain all the ins and outs as you build your policy before hand will ensure you get what you specifically need.
Your agent will request you make a list of your possessions. This is because it will help you to know what you exactly possess and what should be covered in case of loss. You are building a specific policy to suit your valuables. You have the final say when it comes to your coverage, so be honest in determining your household items values.
Another important piece of information you need know about is, there’s a difference between Actual Cash Value Coverage and Replacement Cost Coverage for your possessions. Actual cash value will only cover what your items were worth at the time of loss, while replacement cost coverage will pay for the cost of replacing your lost items.
Replacement cost coverage will a bit more, but it returns more than the Actual Cash Value coverage. With either, their payout is minus the deductible you choose. If you household items are relatively new or you’ve made recent new purchases, then the Replacement Cost Coverage might be the best for you.
Expensive items such as jewelry, antiques and art might be covered up to a certain amount, so you may want to add an additional rider to cover the actual replacement cost for these items. You want to be able to recover their actual replacement value. Speak with your agent about additional riders for valuable items. If you’re not familiar with what a rider is, ask your agent to explain them and how they’ll benefit your losses.
Ultimately you want to be compensated for your belongings, whether lost in a disaster or robbery. It’s traumatic enough dealing with either situation, so by planning ahead (in case of) you’ll be forearmed with your list of household items and the policy that is suited to cover your possessions.