Renter's Insurance Renters insurance is a type of residential property coverage specifically designed for people who rent homes or apartments. These policies are often called "tenant policies. Should I buy Renters Insurance? Your landlord's insurance doesn't cover your personal property. Renter's insurance does. Your landlords coverage will take care of damage to the buildings structure. If you want to protect your personal belongings, you must buy a renters insurance policy. There are two standard renter's insurance policies: The Broad Form covers personal belongings and is the most common type of renters insurance. Typically covering damage from fire, lightning, explosion, smoke, vandalism, theft and water damage. The Comprehensive Form provides wider coverage and costs more. Location counts: If you live in an area prone to violent storms, consider purchasing policy that specifically addresses storm damage. How it Works Renters Insurance pays to repair or replace personal property that is damaged, destroyed, or stolen. Limits on this coverage vary but most provide at least $4,000 and up to a million in protection. The policy may pay living expenses if you're displaced from your home or apartment, generally limited to 20 percent the amount of personal property coverage. You would be paid up to this amount for a reasonable time to repair or to get the property rent ready. Renters policys can provide liability coverage. If someone is injured in your home and files a lawsuit, many renters policy can provide liability coverage and cover legal costs. Actual Cash Value vs. Replacement Cost When shopping for renters insurance consider actual cash value vs. replacement cost coverage. It may not affect your short-term premiums but it may make a large difference in your claim submission. Actual cash-value coverage means the insurance company will subtract depreciation and wear and tear from the value of your property. Basically, you get what its worth today, not when it was new. Replacement cost coverage pays the full cost of replacing your property, minus your deductible. You can usually add replacement cost but the cost is higher. But you are will be able to go out and replace it. Additional Riders If you have antiques, jewelry or art, you can add a rider to provide extra coverage. Your agent can help you here. Shopping for Insurance If you decide that you need renters insurance, it pays to shop around. Rates vary widely, so you should get quotes from several different companies. When comparing prices, be sure you understand the amount of coverage different policies provide. But price shouldn't be the only determining factor. We recommended renters shopping for any insurance check product check the insurers' complaint records. We recommend that consumers go to www.standardandpoors.com and register so that you may view their financial ratings on most insurance companies. It may be worth a little more to have a company with a good consumer track record and a proven ability to pay as determined by the S&P ratings. Note: A complete inventory of your property can be helpful if you ever file a claim. If you can take your inventory with a digital camera keeping all receipts and serial numbers, this is best. This will help expedite a claim should you ever need to prove you owned items stolen or damaged. Some companies may offer a free home inventory software program. Keep one copy on a CD and store it with other valuable papers in a safe deposit box for safe keeping. REsourced from www.yourpropertypath.com You may republish this article, as long as you do not edit and you agree to preserve all links to the author and www.yourpropertypath.com
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