Renter's insurance
protects your property against damage or loss, and insures you in case
someone is injured while on your property. It's offered by most
companies that sell homeowner's insurance. If you rent or lease your home this is for you!
Why Should I Buy It?
Your landlord's insurance
doesn't cover your personal property -- your clothes, furniture,
stereo, computer, bicycle, jewelry, or anything else. Renter's insurance
does. Renter's insurance also may pay for accidents that occur on your
property or damage to others' property. A renters insurance policy
insurance can be an important -- and relatively inexpensive --
protection for you and your family.
What's Covered?
You can purchase different levels of
coverage, but there may be limits on the values of specific items
covered. For example, some policies limit the amount they will pay for
computers, jewelry, and other specific items. You may purchase
additional coverage ("floaters") for items not covered in your basic
policy. You also may want to purchase separate coverage for losses due
to earthquake, flood, or other natural disasters.
How Much Insurance Do I Need?
Estimate the value of your personal
possessions. This is the amount of insurance you need to replace the
contents of your home if everything is destroyed.
Decide whether you need supplementary
coverage, such as for damages from flood or earthquake. The more
coverage you buy, the less you will have to pay out of your own pocket
to replace property that is destroyed or stolen.
What Are The Deductibles?
A deductible is the amount you will pay out
of your own pocket before your insurance pays on a claim. This amount
may be a percentage of the value of the actual loss, a percentage of the
value of the insured property, or a specific dollar amount. For
example, if your policy has a $200 deductible and your claim is $1,000,
you will pay the first $200 and the insurance company will pay the
remaining $800.
What's The Difference Between Actual Cash Value And Replacement Cost?
You can insure your property in either of two ways -- the actual cash value, or the replacement cost.
Actual Cash Value
This coverage considers the age and condition
of the item at the time of the damage or loss, and pays only what it is
worth to replace it with an item of similar condition -- used.
Replacement Value
This pays you the cost to replace the covered
item with a comparable new item. Replacement value policies usually
cost more, and may have restrictions.
Does A Parent's Policy Cover Students?
If you are under 26, attending college, and
living in a dorm, your parents' homeowner's or renter's policy may give
you limited coverage. You will not be covered on their policy if you
live in an apartment
Can Roommates Or Unmarried Couples Purchase Renter's Insurance Together?
Yes, but find out whether your policy needs
to be updated if you get a new roommate, or if all your roommates need
to be named under the policy. Some policies automatically extend
coverage to any resident of a policyholder's household who fits the
definition of a "domestic partner." Otherwise, consider carrying
separate coverage for each of the adult tenants.
Available Discounts
Most of the discounts which apply to homeowners insurance also apply to renter's insurance.
