The Basics and Benefits of Renters Insurance

Imagine this scenario: You come home from work, you’ve had a long day and all you want to do is relax in your home. You open the door to your apartment, and to your shock and dismay,  you discover that someone had broken in and stolen your TV, stereo and other valuables. And to make matters worse, you never thought to purchase Renter’s Insurance.

Renters insurance has many similarities to homeowners insurance. It is designed to protect your assets from natural or man-made disasters and will offer renters the comfort and security of knowing that they will be able to replace their possessions if disaster strikes.

A standard residential insurance policy will cover your personal possessions that are contained within the rental unit from eventualities such as weather phenomena – be it hail or storms, lightning, volcanic eruption or damage caused by ice and sleet – any damage caused by mechanical or electrical malfunction such as water damage due to plumbing issues or fire resulting from an overheated household appliance, and intrusive acts such as theft or vandalism. As is true of most home owner’s insurance policies, flood or earthquake coverage requires additional policies.

Begin your process by making a complete list of your possessions, including serial numbers and photographs or a video tour. This list, plus any receipts for major purchases should be kept in a safe and fireproof place. To help you get started on this project, visit www.knowyourstuff.org.

Consider a policy that will offer replacement value rather than actual cash value. Your furniture may be getting a little old by now, but you would still have to replace it at today’s cost. Opting to choose a policy that includes replacement value will offer you extra peace of mind and may even be more cost-effective in the long run.

Should your rental home be rendered uninhabitable, you are facing major living expenses that could become overwhelming. Renters insurance can protect you from any sudden and unwelcome costs due to temporary displacement.

Renters are not immune from liability. If you own a dog, or should someone get hurt while in your home, liability insurance will help protect you and your economic health against any of these circumstances.

As with any home owner’s insurance policy, discounts may be offered if you install protective devices, such as smoke or burglar alarms or keeping fire extinguishers in an easily-accessible and visible place. Other ways to save may be to purchase an auto and renters insurance together. Many insurance companies offer discounts for multiple insurance policies.

No matter where you live, your home is your refuge and your castle. It also holds many possessions that are valuable and would be hard to replace should they be lost. Renters insurance protects you from elements beyond your control and will eliminate worry and stress from your life and give you peace of mind.