The Value of Renters Insurance Coverage
Renter’s insurance coverage is cost-effective, as well as being a smart financial choice.
Renters insurance coverage is just as important as homeowners’ insurance. Don’t skip this valuable protection for personal property.
What is Renter’s Insurance Coverage?
Renters insurance coverage insures the belonging of anyone who is renting an apartment or residence. Just as with a home owner’s insurance policy, the renter’s policy is for the estimated amount of the person’s belongings.
Renters’ insurance coverage does not include any damage to the original arrangement of the residence itself. The owner of the rental unit must obtain homeowner’s insurance to cover that.
What Does Renter’s Insurance Coverage Include?
Renter’s insurance coverage can be one of two main types. The first type pays out the replacement cost of the lost or damaged items. The second type pays a flat payment based on the value of the property. It is an area that renters should think about carefully since they may own an older television worth $50, but it would cost them much more to buy a new television.
Renter’s insurance coverage covers the renter’s property while it is inside a residence and when it is in transit to or from the residence. Thus, if the moving truck is stolen or the items are damaged, the renter’s insurance policy will replace them.
Also, many renters insurance policies cover a vehicle’s contents as well, although not the vehicle itself. That means that if a laptop is stolen out of a car, the renter’s insurance policy will cover it.
Who Needs Renters Insurance Coverage?
Anyone who is living in a residence that they do not own should obtain renters insurance coverage. Many people who do not own expensive furniture, such as young people, skip renter’s insurance because they do not think they need it. However, add up the cost of replacing everyday items such as clothing, shoes, belts, towels, toiletries, and the myriad of other necessities, and the value of renters insurance soon becomes obvious.
Cost of Renters Insurance Coverage
Renter’s insurance coverage is some of the cheapest insurance available. It is not unusual for a very basic replacement policy to cost less than $20 per month. Also, if a person obtains renter’s insurance from the same company they have their automobile insurance with, there is often a multi-line discount.
Even if a person does not own expensive household items or collectibles, the renter’s insurance coverage will provide a safety net to replace basic living supplies.