Renters Insurance Coverage – An Introduction to Renters Insurance

If you are a tenant and are unaware of renters insurance coverage, it will help your cause to read up on this introductory article about renters insurance coverage. Renters insurance coverage is very affordable these days with major insurance companies like Geico, State Farm and Allstate and many others, all offering several affordable options of renters insurance coverage. In fact, one can typically insure their rental apartment for less than $1 a day and get a comprehensive renters insurance coverage in return.

What will renters insurance coverage actually cover? – renters insurance coverage – Renters insurance coverage will protect a tenant against loss of belongings in a burglary or theft, against loss or personal property in the event of a fire and other disasters and against liabilities that might arise out of personal injuries to third parties while they are inside a rental premises.

Do I need renters insurance coverage even if my landlord is insured? renters insurance coverage – Yes, in most cases, the landlords insurance coverage will only cover the actual apartment and not the belongings in it. So, for example, if an apartment is completely destroyed by a fire, the landlord will be compensated for the burnt down apartment although the tenant will have to write off their personal belongings as a total loss as they will not be covered by the landlord’s insurance coverage. However, if the tenant had signed up for renters insurance coverage, it will help them recover the cost of their personal belongings. A little bit more about recovery of personal property is mentioned below.

How much value can I recover on my personal belongings? renters insurance coverage – The answer to this question will depend on the type of renters insurance coverage that was availed. If a tenant had gone in for a renters insurance coverage that is based on actual cash value or on an ACV basis, the insurance company will reimburse the tenant with market value of their personal property. This market value will usually be lower than the cost of the original belonging as it will factor in depreciation when calculating the value of the property. However, tenants will be able to get a reimbursement that matches the original cost of their personal belongings if they had signed up for a renters insurance coverage on a replacement cost basis. However, tenants have to understand that a replacement cost basis renters insurance coverage is obviously more expensive than a renters insurance policy that will pay out actual cash value on the lost belongings.

How much does renters insurance cost? renters insurance coverage – An average renters insurance coverage can be bought for well less than $30 a month which is less than a $1 a day. However, the cost of renters insurance will of course depend on the valuables that are insured. Also, tenants might be able to get certain discounts when they are shopping for renters insurance. For example, some companies will offer a small discount if the rental property is well appointed with safety features like smoke detectors and fire extinguishers. Also, a rental insurance policy or any insurance policy for that matter will cost less when the premiums are paid upfront rather than on a monthly basis.

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