Reasons for Renters Insurance
So... you have just moved into your new place. It could be an apartment or home. You're unpacking and getting the furniture... "just right". You can finally relax. But wait... what would happen if there was damage to your personal property from... a fire... a storm. Or what if you had a theft? What would you do? How would you replace your personal property... and get back on your feet? Did you know... Landlord insurance policies generally do not cover "your" personal property and some risks? To protect your personal property and yourself from some risks consider purchasing Renters insurance. It helps protect your financial well being. Renters insurance has some similarities to homeowners insurance.
However, it is designed specifically for those who rent where they live. Renters Insurance policies offer a variety of coverage, deductibles and endorsements to choose from. An insurance agent can help you choose a policy that's right for you. There are a few things to consider when you are looking to purchase a Renters insurance policy. For one, know what a policy will and will not cover. Review the terms of your policy to learn exactly what is, and what is not covered. A policy with "Replacement Cost Coverage" will reimburse you the amount that it takes to replace your personal property with similar items, up to the policy limit.
A policy with "Actual Cash Value" reimburses you for what your personal property was worth at the time they were damaged or destroyed, up to the policy limit. Please note the reimbursement for actual cash value could be much lower than replacement cost because of depreciation and other factors. Another thing to consider is whether your policy will cover any additional living expenses if your residence becomes uninhabitable due to a fire... storms or other loss. You should also consider what type of liability coverage the policy offers. Liability coverage provides (depending on the terms of your policy) financial protection if someone is injured while at your residence.
So, once you have purchased a Renters policy, you might think you are done, and ready to kick back in your new place. Not so fast... there's another big thing to consider. Like homeowners, renters should make sure to have their personal property documented... just in case something happens. Product identification, including brand, model, serial number, purchase date and price should be documented. It's also a good idea to take photos or a video of each room and its contents. Keep the list, photos and or video of your personal property in a "safe" place. So, protect yourself from financial loss with renters insurance... and then you can really relax and settle into that cushy couch... and enjoy the show on your big screen TV.
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