Why Having Renter’s Insurance Is So Valuable
Posted at by ifydcat on category FinanceTenants typically are most concerned with ensuring they are getting the best deal with regards to rent and deposit requirements. However, it is just as important for renters to have renter’s insurance. This protects your financial investment in all of your personal belongings and is a wise financial decision.
Your landlord has an insurance policy that covers the property itself, along with the land underneath it. But that does not mean you don’t need to contact an insurance company and get all your personal belongings insured as well.
The insurance covering your landlord’s building and land cover only his property, never the property of tenants. In order for you to ever recoup any losses from disasters such as fire, burglary or flood, you must have already purchased an insurance policy on your own for your own property.
When you look at all your belongings and make an approximate estimation of their value, you will definitely understand why you would want to buy a policy. Keep in mind you will you be able to restore all your things with the money the insurance company will provide.
Fire, earthquake, flood and theft are all usually covered with a basic rental insurance agreement. Most rental insurance policies have very good coverage on all your stolen or damaged possessions.
Renter’s insurance is a form of property insurance, which typically covers property either at the depreciated value of the property or for the replacement value of the property. The best protection is afforded by selecting replacement value insurance. For example, if you had purchased a 32″ television for $800 three years ago and the television is destroyed in a fire, replacement value insurance would provide you with enough money to get a new 32″ television with similar features. Depreciated value insurance might only provide you with $100 or so, what you might have been able to sell the three-year-old television for if you had held a garage sale.
Renter’s insurance policies usually allow you to insure anything that you feel has value. This includes clothing, jewelry, furniture, and even electronics.
These great insurance policies also offer protection against possible lawsuits in the event of a friend of yours getting injured while in your apartment. So you see now how very important these insurances can be for a renter.
This author has been blogging about home renter’s insurance for the past six years. Furthermore, this author likes writing about New York City neighborhood subjects, such as Brooklyn Heights apartments for rent and Greenpoint condos.