Whether you’re renting a home, apartment, or condo unit, your property and belongings are never far from risks such as theft or damage. If homeowners take the time to insure their land and their houses in case of peril, shouldn’t you be doing the same for your rental?
The Insurance Information Institute (III) reported in 2008 that contrary to what most renters think, renters insurance can really offer a huge sigh of relief for residents. Think about it this way, at about the cost of an all-you-can-eat buffet at Sizzler every month, you can insure your rental home, condo, or apartment, and save yourself thousands of dollars in the long run.
Until the present, nearly half of all people who rent in the US have no renters insurance, as stated by a survey from the National Association of Insurance Commissioners. A huge number of renters believe that any untoward incident in their rental will be covered by their landlord’s policy. But this is not always the case, such as in instances involving personal injury, theft, vandalism, and others. Whatever happens to belongings within the rented unit is not the liability of the landlord, the III reiterates.
Just to cover the basics, here are key points to consider before you sign up for a renters insurance policy.
Type of policy. You can either get a replacement cost policy, in which the policyholder receives the overall cost of all items damaged; or an actual cash policy, where the value of damaged property is paid, minus the cost of depreciation.
Cost of premiums. Replacement cost policies generally cost more than actual cash plans. On the average, annual premiums for renters insurance in the US cost about $200, according to the III.
Types of peril covered. Most policies carried by leading insurance companies offer coverage of 17 types of peril including fire, theft, vandalism, hail, explosion, damage by aircraft or vehicles, and others. You need to check with your insurance provider to be more specific about these conditions.
Location of the rented unit. Not all types of perils are covered by renters insurance. Insurance authorities mention that damaged caused by earthquakes and flood are generally not included. If the rental unit is located in an area where both calamities are prevalent, then renters can avail of additional policies to cover for their properties.
The application process. The internet has now made it very convenient to sign up for things such as insurance. It will be better to select a renters insurance provider that offers comprehensive website information and customer care for its clients, as well as a quick and hassle-free application process.
Available discounts. Find an insurance company that will reduce your insurance premiums if your home, condo, or apartment fits certain safety criteria. The III suggests some ways to save on renters insurance, such as increasing your deductibles, installing smoke detectors, adding fire extinguishers, and having safety locks or burglar alarms. You can also reduce the risk of fire by quitting smoking, an added factor that makes clients eligible for discounts.
Like all other types of insurance, renters insurance provides you with an effective means of coping with risk, no matter what type of peril comes your way. With just a minimal investment for a renters insurance policy, you will find that you are saving yourself thousands of dollars in the end, and not to mention saving yourself from a ton of headaches.