You may be wondering whether or not you need renters insurance because you may be thinking that surely the owner of the property has property insurance. The truth is that their insurance only covers the property itself, and any liability that they may incur. Your possessions, however, are not covered at all, and there may be other things that you should have protection for as well, that renters insurance can provide.
Do You Know the Value of Your Possessions?
If you have been living on your own for some time, then you may have more possessions than you think – in terms of how much it might cost to replace them. If you start with the larger items, this may include things like furniture, musical instruments, possibly a washer and dryer, a microwave, and much more.
Then, consider the value of the electronic items and other things that may be in your apartment. This could include DVD players, wide screen TV’s, CD players, computers, stereos, cellphones, iPods, and more. You may also have CD or DVD collections, other collections, jewelry, clothes, books, exercise equipment, and more. When it is all added up, it would not be cheap or easy to replace.
What Problems Can Cause A Loss of Possessions?
There are many problems, even in an apartment that can cause a loss of your possessions – or some of them. Things like water or smoke damage, a fire, theft, vandalism, tornado, etc., are just some of the ways that you can experience a loss. While it does cover many types of events, it will cost extra to be insured against floods, earthquakes or landslides, or a nuclear hazard. It could also be an expensive loss, too.
Another potential loss can occur if someone is hurt in your apartment, or in other areas of the property for which you may be responsible. An injury to someone else can result in a lawsuit, and you would be the one to get sued. If you have renters insurance, however, it could cover the loss for you, enabling them to get the needed treatment, and get you off the hook.
What Types of Rental Insurance Coverage Is There?
There are basically two types of rental insurance available. The less expensive form gives you what is called actual value. This type of apartment insurance gives you the value of the item minus any depreciation involved, which may be considerable on any older items. The other kind, which is more expensive, is called replacement value, and it will enable you to get a nearly identical item at no cost to you.
What Kind of Other Coverage Is Available with Renters Insurance?
Renters insurance can also offer you some other good benefits, too, which could come in very handy – if ever needed. If the apartment or home is damaged and you need to live elsewhere, you can qualify for Additional Living Expenses, which provides money for any expenses above your normal costs. You can also get Inflation Coverage, which provides changes based on an inflation index.
Special items will require a special coverage in order to be insured for their real value. This includes items like jewelry and furs, computers, firearms, silver or gold items, art, etc.
Renters insurance is a good idea and it really does not cost much each month. Most renters would probably be able to get sufficient coverage for under $20 per month. Be sure to shop around and get several renters insurance quotes to get the best price and coverage.