Renters Insurance Policies
Renters insurance is a necessity for those individuals renting an apartment, townhouse, or other living space. Though a landlord should have insurance on the building in which you reside, that insurance does not cover any of your personal property inside the building. Items such as furniture, electronics, clothing, or jewelry are not insured unless you purchase additional renters insurance to cover these things.
Types of Policies and Major Benefits
The standard insurance policy for renters protects against sixteen types of destructive events that could occur. Some of these include fire, lightening, an explosion, theft, falling objects, the weight of ice or snow, and vandalism. If you live in an area that is prone to earthquakes or floods, you may need to purchase additional insurance as those two events are not covered by standard insurance policies for renters. In addition, insurance policies can offer either the actual cash value of an object or replacement cost coverage. The important difference between these two terms is that the actual cash value of an object is what it was worth the day that it was destroyed, while replacement cost coverage considers the price to replace the damaged item with a new version.
It's recommended that you take an accurate inventory of the valuable items in your rental unit in order for us to construct a policy to cover that amount. You then pay a monthly or annual rate to keep the insurance policy active. If the need arises to use your policy, contact your agent and explain the situation as completely as possible to avoid confusion and delays in receiving your insurance check.