Having a good renter’s insurance policy can be the difference between protection and disaster in the event of property damage or theft. It can cover medical payments as well. It means coverage for medical expenses if someone, other than a resident, gets hurt in an accident at the property.
One Payment vs. Monthly Payments
With renter’s insurance, just like your car insurance, you can usually pay in one lump sum for the entire year and get a huge discount. Most insurance companies will allow you to pay a monthly premium, however they may charge extra for installment plans.
Understanding the Claims Process
It’s important that you know how to file a claim before you need to file it. Most people end up learning as they go when filing an insurance claim. It is crucial to know the numbers to call, who you’ll need to speak to immediately and exactly what information you’ll need so that you can have that information readily available for you to use when filing your insurance claim.
The True Value of Your Personal Possessions
When it comes to buying renter’s insurance, it’s truly not the time to guess. Guessing can end up costing you a lot of money and heartache. You likely have absolutely no idea how much your possessions are worth. You must take a thorough, fact-based inventory and list everything with photo documentation.
Keep Your Inventory List Safe
Your itemized list should be placed somewhere safe (like a fireproof safe or safety deposit box away from the home) so that you can go right to it and refer to it. This will save you a lot of time in filing your claim, which will get your personal items replaced much faster.
Understanding Your Coverage
You may need to purchase extra coverage for some of your items. With most insurance policies, there will be a cap placed on some of your belongings of higher value. In other words, the insurance will only cover some things up to a certain amount.The entire idea is to make sure that you’re always fully covered for your item’s entire value.
Getting Paid for Living Expenses If Displaced
One of the overlooked parts – yet perhaps the part of renter’s insurance that might be pertinent when a loss occurs – is the “Loss of Use” element of your renter’s insurance coverage. This coverage pays for things such as hotel bills, temporary rent payments and deposits if you happen to get displaced while your property is being fixed or replaced.
Understand Which Type of Coverage Is Best
There are basically two types of renter’s insurance plans you can purchase. These are Actual Cash Value (ACV) and Replacement Value (RV).
When you have something that’s damaged, ACV will take the depreciation and usage of your items. In other words, you’re NOT truly going to get back the value of what it will cost to go out and buy a new replacement item. However, with RV insurance, that’s exactly what you’ll get…the amount it costs you to go buy a new replacement item today.
Liability Coverage is another protection typically offered in a renter’s insurance policy. This coverage may help protect you from paying out of pocket for certain costs if you are found legally responsible for injuries to other people or damage to their property.
As with other coverages, limits apply to the amount a policy will pay out after a covered loss. Read your policy to brush up on how much coverage it provides and make sure it fits your needs. Your insurance agent can help you adjust the limits if you decide you may benefit from additional coverage.