If youíre renting a house or apartment, you may be surprised to learn that your landlordís insurance doesnít cover your personal belongings. Additionally, you may be legally liable for any accidental bodily injury or property damage of others that occurs in your rental home. You may also be liable for any damage done to the house or apartment you rent as a result of negligence on your part. Thatís why it is so importance to carry renters insurance to protect not only your valuables, but also yourself.
Renters insurance can provide protection for your personal property against fire, certain natural disasters, theft, and vandalism. Some renters insurance policies can even cover you for personal possessions that don't happen to be in the apartment or house at the time of the loss. Renters insurance with personal liability protection provides protection for injury to another person or for damage to another person's property if an incident occurs within your rented residence or elsewhere.
To determine how much coverage you need from your renters insurance, add up the replacement cost of all your possessions. If the amount exceeds what youíre able to pay out of pocket, you need renters insurance! In fact, some landlords require tenants carry renters insurance. You'll be surprised at how affordable it can be.
When youíre shopping for renters insurance, you should know the difference between actual cash values and replacement costs. Renters insurance policies typically include what is called actual cash value for your property if you need to make a claim. Actual cash value coverage only pays on the cash value less depreciation of the item. For example, a $2,000 stereo you bought four years ago may only be worth $800 today. The better choice is replacement cost coverage. This type on renters insurance reimburses you for the cost to replace your stolen or damaged item with a new item of equal or lesser value. You can have your insurance agent add it as a rider to your policy. Replacement cost coverage is only few dollars more and covers your property with the amount to actually replace an item with a new one.