Are You a Renter? You Might Need Renters Insurance
Do you rent an apartment? If so, you probably haven’t thought about the importance of renters insurance. Even when you rent, you are just as likely as homeowners to experience a misfortune. And even if your rental is covered by landlord insurance, that doesn’t extend to your belongings. Renters insurance is the only way to protect your belongings.
How it Works
This insurance is an alternative form of insurance that provides benefits similar to house insurance, but for people who rent. This coverage does not insure the building; instead, it insures the renter’s belongings inside their living space.
Who is Renters Insurance For?
This insurance is for people who do not own their own living space, but pay rent to a landlord. Without this insurance, a renter is not entitled to any replacements or repairs if their belongings are damaged or stolen. And when you live in an unsecured apartment complex, the chances of burglarly are high.
How it Works?
This insurance is similar to any other type of insurance. If your belongings are damaged, lost, or stolen, you are eligible to file a claim. The insurance company examines the claim and, depending on the circumstances, chooses to fulfill or deny it. They might ask you to provide certain evidence, such as a police report.
Types of Coverage
“”Replacement cost coverage”” and “”ACV (or “”actual cash value””) coverage”” are typical types of coverage. Replacement cost coverage replaces lost/stolen/damaged belongings for their value at the time of purchase. If you purchased a television for $200 three years ago and it is now damaged or lost, the insurance company will pay out $200 to replace it.
ACV coverage reimburses you for the value of your goods at the time they were stolen. A computer purchased five years ago may have been worth $1,000. Today, its value may have depreciated to $400. The insurance company would pay $500 to replace the computer.
Renters insurance helps you financially. Some policies will cover bodily injury lawsuits and additional living expenses. Additional living expense applies when your apartment is unlivable, and you need a place to stay until finding a permanent space.