If you are renting, you will need to purchase renter’s insurance. Your landlord will hold a policy on the premises only. In case of fire or theft, you will not get your belongings replaced, unless you have your own coverage.
Take the time to shop around for the best coverage, at an affordable monthly premium rate.
Important tips to consider before purchasing rental insurance:
What coverage can you afford? – While you may feel that some of your belongings are priceless, you will have to be realistic and put a value on each item you own. Sentimental value does not enter into the calculation of worth. Take the time to get an estimate of replacement value and decide your coverage limit from that total.
Set your deductible amount. – Traditionally, opting for a higher deductible will lower your monthly insurance premium payable. A deductible is the dollar amount of loss you can absorb, before you file your insurance claim. If the lost or damaged property adds up to a thousand dollars, and your deductible is five hundred, your insurance will only cover you for five hundred.
Type of Insurance:
Actual Cash Value – This type of renter’s insurance will pay you the actual value at the time of loss, less depreciation. If your budget is tight, this may be the option to choose.
Replacement Value – You will pay a higher monthly premium for this type of coverage, but the payout will be actual value with no depreciation.
It is important to have liability included in your renter’s insurance package. This will protect you from a personal injury lawsuit.
Take pictures of your belongings. Remember to have your jewelry appraised. Catalogue your property and include receipts and serial numbers when possible. This catalogue of your belongings should be safely stored away from the premises. If you do keep the list in your house, make sure it is in a fire safe container. It is wise to make a duplicate copy. If you have to make a claim, you do not want to be guessing at what you have lost or its value.
Don’t forget to add clothing to your list of possessions. It may be easier to just estimate a value of all clothes and shoes in the house. We sometimes focus on appliances and furniture and forget the smaller items.
There are landlords who will not even consider renting out their premises, until they are satisfied that you have renter’s insurance in place. This gives them the security of knowing you will not sue them for any mishaps that happen to your contents.
Don’t rush your decisions. Choose a reputable insurer, with a proven record of payouts. Find the company that suits your needs and meets your budget demands.
Don’t let your coverage lapse. Keep updating your content catalogue, as you purchase new furniture or appliances. In the event of a move, it is important to inform your insurance broker of your new address and telephone number.