Most people believe that property insurance is meant for homeowners. If you stay in a rental home, apartment or villa, you might want to cover your belongings with renters insurance. Yes, there’s a special form of property insurance that’s meant for tenants and renters. In this post, we will try to understand renters insurance better.
What’s renters insurance?
As mentioned, renters insurance is property insurance for renters. Basically, this kind of policy covers your personal goods, belongings and products against theft, fire, and other damages that may happen in a rented home. It also covers for your personal liabilities to some extent. For example, if someone was injured in the house owing to your mistake, the policy will help in covering your liability. However, in case such accidents happen due to structural damage or other related issues, the homeowner’s property insurance will be considered.
What are the options?
There are two common kinds of renters insurance. The first type is called an Actual Cash Value policy, which offers the actual price of the product, after considering factors like depreciation. If you file for a claim, you will get the ‘secondhand’ value of the damaged goods. Quite obviously, the cost of buying such policies is much lesser, and the monthly premiums are on the lower side. However, if you are looking for something better or have expensive products, appliances and jewelry, a Replacement Value policy might be your best bet. Such kind of policy will pay for the current price of the concerned damaged product, so that you can replace it. The premiums are higher, but worth paying, especially if you are looking for real cover.
Things to note
Renters insurance can be confusing, but the costs of premiums are pretty affordable. Standard policies may not cover for all the goods you own, mainly for the expensive ones. Check with the insurance provider to know the options. Also, it’s a good idea to check if the concerned policy offers cover for damages caused by natural calamities, which is unlikely. You will have to pay extra for the same. If you are new to such kind of insurance, it’s best to ask for quotes for better comparison. Many sites offer direct guides and comprehensive comparison charts, which may be handy for choosing the right one.
While renters insurance is not compulsory, you should certainly consider it for your own benefit. Check online to find options!