The Importance Of Having Renters Insurance

Renter’s Insurance: Better Safe Than Sorry

If you are renting your current home the most intelligent way to make sure that your personal possessions are safe and protected is to purchase renter's insurance. Some people mistakenly believe that apartment building owner’s or rental homeowner’s insurance policies will cover the contents of the apartments or rental homes along with the buildings in the event of a major fire damage, smoke damage, vandalism, stolen property or any other type of damage, but that is not the case. The only way to secure your property properly when you are renting is to purchase renters insurance.

Below is a list of tips to help you prepare and purchase renter’s insurance:

1.       Start by taking a detailed inventory of all your possessions. You have to be able to account for each and every possession that you own. Don’t make the mistake of only putting a single figure down on paper for all of the things that you have in your rental property. This might seem like a good idea to save time, but it will cost you later on when items start getting disputed a little more heavily during the claim process.  Be sure and list as much information that you have available regarding your possessions, including all numbers associated with a piece of property, pricing, where it was purchased, and any other details. This will help you win any disputes that may occur with your insurance company down the line.

2.       Many renters think that they are covered under their landlord's insurance policy, so they don't get their own renter's insurance. Even if your landlord has a comprehensive policy on his or her property, that will not cover the possessions that are within your property. There are plenty of gray areas with insurance policies, so you need to make sure that you have all of your details worked out in case the unfortunate happens.

3.       You will need to determine what kind of value you looking to get out of your insurance policy. Do you want only the replacement price of your possessions or are you looking for some sort of cash value out of them? Most renters don't realize there is a major difference between the two options. Replacement cost is going require that you have a bigger insurance policy and will have considerably higher payments. Having a replacement cost policy will replace all of your possessions if they are stolen or if a fire burns down your property.

4.       Most insurance providers will give you the option to add a personal liability policy onto your insurance and this is always a good idea. If somebody gets hurt while they are on your property, you can be sued. Nobody wants to be sued and go through all the cost and hassle of dealing with a lawsuit. It is important that you keep this in mind at all times.

5.       Take your time and shop around with several different companies. Today most insurance companies offer some form of renter's insurance, so you have options and do need to be tied to only one company. If you search hard enough and you will find really good deals out there and the more you shop around, the better your chances are of finding a good deal.

6.       Are the premiums you are looking at are just too high? In most cases, this means you don't have a good credit score. Get a copy of your credit report and make any repairs to improve your credit score. Always keep in mind that a fair (660-719) to good (720-749) credit score will save you money.

In conclusion it just makes good sense to be prepared and have some type of a renter’s insurance policy in effect to protect you and your valuable possessions from a possible disaster.

Make sure to read the OwnerWiz article “Tips on Creating a Home Inventory”.