Renters Insurance is designed to cover all your personal property as long as it is listed. Be sure to write down and video each room, if available, to help identify your personal property.
Be sure to look at current value vs. replacement value when considering Renters Insurance. Current value will only pay you what your TV is worth today not what it costs to replace it. I would recommend getting the replacement value type with Renters Insurance.
How much Renter’s Insurance should you buy? Ideally enough to replace all the “stuff” you have that makes up your life. Clothes, furniture, dishes, jewelry, food, books, recreational toys, etc. Your list will be unique to you.
How much insurance you purchase is important but so isn’t the type of coverage you purchase and the insurer you purchase the policy from.
Basic renter’s policies will reimburse you for the “Actual Cash Value” of your damaged property. That means the value of used clothing, used furniture, an old computer. You, on the other hand, will most likely need to replace your damaged property with new items. The difference between new and old is often significant. Make sure whatever limit you buy includes “ Replacement Cost” coverage. Under this type of coverage, you are entitled to claim the value of a new item should you actually replace it with one of similar kind and quality. Of course, the most the insurer will pay will be the limit you select. If you can afford it, that limit should be at least what you would have to spend to replace all those items you could not get along without.
Most renters’ policies provide property coverage on a “ Named Peril” basis. In other words, the policy will state the specific type of damage your property will be covered for. To be covered you have to prove to the insurer one of the covered perils caused the damage, a process not everyone is comfortable with. It is good to have someone on your side when this occurs. Often you can’t find that person that sold you your coverage on the phone or over the Internet when you have a claim. It’s nice to have a local person to seek assistance from.
Watch out for limitations on specific types of property. You’ll most likely find one for the theft of jewelry or silver, and jewelry often includes costume jewelry. Some of these limitations can be increased for a nominal premium or your can specifically insure unusual or expensive items.
Personal liability coverage will also be provided. That limit should be not less than $100,000 and consistent with limits you might carry on your car insurance.
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Be sure to look at current value vs. replacement value when considering Renters Insurance. Current value will only pay you what your TV is worth today not what it costs to replace it. I would recommend getting the replacement value type with Renters Insurance.
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How much Renter’s Insurance should you buy? Ideally enough to replace all the “stuff” you have that makes up your life. Clothes, furniture, dishes, jewelry, food, books, recreational toys, etc. Your list will be unique to you.
How much insurance you purchase is important but so isn’t the type of coverage you purchase and the insurer you purchase the policy from.
Basic renter’s policies will reimburse you for the “Actual Cash Value” of your damaged property. That means the value of used clothing, used furniture, an old computer. You, on the other hand, will most likely need to replace your damaged property with new items. The difference between new and old is often significant. Make sure whatever limit you buy includes “ Replacement Cost” coverage. Under this type of coverage, you are entitled to claim the value of a new item should you actually replace it with one of similar kind and quality. Of course, the most the insurer will pay will be the limit you select. If you can afford it, that limit should be at least what you would have to spend to replace all those items you could not get along without.
Most renters’ policies provide property coverage on a “ Named Peril” basis. In other words, the policy will state the specific type of damage your property will be covered for. To be covered you have to prove to the insurer one of the covered perils caused the damage, a process not everyone is comfortable with. It is good to have someone on your side when this occurs. Often you can’t find that person that sold you your coverage on the phone or over the Internet when you have a claim. It’s nice to have a local person to seek assistance from.
Watch out for limitations on specific types of property. You’ll most likely find one for the theft of jewelry or silver, and jewelry often includes costume jewelry. Some of these limitations can be increased for a nominal premium or your can specifically insure unusual or expensive items.
Personal liability coverage will also be provided. That limit should be not less than $100,000 and consistent with limits you might carry on your car insurance.