5 Factors to Consider When Buying Renter’s Insurance
Many renters do not realize the significance of buying a renter’s insurance, as they feel that they don’t need it; whereas, there are many others who don’t even know about the option. Broadly classifying, there are typically two types of renter’s insurance plans – Actual Cash Value (ACV) and Replacement Value (RV). Simply speaking, ACV covers damaged, stolen or destroyed personal items, at existing cost minus depreciation, and does not extend to any new item. On the upside, ACV policy has a lower premium compared to RV policy. To help renters make the right pick, in this post, we discuss five key factors to consider when buying renter’s insurance. Let’s take a look.
1. Scope of Coverage
The primary consideration in a renter’s insurance policy is the scope of its coverage. You need to find out if your renter’s insurance policy covers the bulk of your personal property, including clothing, furniture, electronics, and artwork. An insurance policy may not cover jewelry, silverware, fur, and other expensive items. Check whether your renter’s insurance policy also covers your computer equipment. You may buy additional coverage for the items not covered by the insurance policy.
2. Types of Risks Covered
Check if the renter’s insurance policy for your Tuscany or Bellagio rented apartment home covers you against theft, smoke, fire, explosion, and water damages. Breakage may not form a part of the insurance policy. What the renter’s insurance policy covers is wind damage. You are, however, not covered for damage from floods, storms, and excessive rains, if you have rented a ground-level or below-grade apartment. You may consider buying flood insurance.
3. Accountability for Third-Party Damages
A renter’s insurance policy not only covers damages to your personal belongings and risks arising from natural and artificial disasters, but also third-party damages. The liability portion of the insurance policy covers you for people injured inside your rented apartment. Additionally, renter’s insurance typically covers your immediate family members and spouse. The policy, however, covers only two roommates, if you don’t live with family.
4. Coverage if Displaced
Don’t forget to look for the “Loss of Use” element of your renter’s insurance coverage. The “Loss of Use” element covers hotel bills, temporary rent payments, and security deposits if you vacate the rented apartment or make a displacement due to extreme damage to the rental property. Besides, learn about the amount of time for which you are covered and the payout cap.
5. Pet Coverage
Your renter’s insurance policy also covers your pet, who stays along with you in your rented apartment. If your pet happens to harm a person inside or outside your Tuscany or Bellagio apartment home, the liability portion of your renter’s insurance policy typically covers the damage. Homeowner and renter insurance policies typically cover liabilities for dog bites.
Whether or not there may be a clause in the lease agreement of your rented apartment to buy a rental insurance policy, purchasing one is always sensible. If you feel that buying a renter’s insurance policy adds to your expenses, you are mistaken. Most of the renter’s insurance policies cost you less than $1 per day. Renters insurance is not only fairly inexpensive, but is also invaluable given the fact that it promises complete peace of mind for renters. If you wish to learn more about renting, feel free to get in touch with one of our representatives.
Kington Properties is a family-owned and operated property firm with a number of fully staffed and maintained properties, including the much sought after Tuscany Apartment Homes.