When you rent, you want to be sure that you carry a renters insurance policy to be sure that your personal belongings are covered. While the landlord most likely has an insurance policy, it will not cover the property that you put into the rental just the rental itself and the landlords property. Renters insurance is very much like a homeowner policy, but it is much more affordable.
What is Renters Insurance?
Renters insurance is a policy that a renter takes out to cover things like your furniture and other personal possessions. While it does have a monthly premium, it is not very much and could be well worth it in the long run if there is a theft, fire, etc. Otherwise, you could be left with nothing, since the landlords insurance does not cover your belongings.
If you do not own your home, then you want to be sure that you look into renters insurance. Whether you are renting an apartment or a home, you need to have this type of insurance. While you may think that you do not have anything of value, you may be surprised what you have if you lose it all. It protects you and the possessions that you own, no matter how much you own or dont own.
The most common types of renters insurance are an actual cash value (ACV) policy and a replacement policy. The replacement policy will replace your belongings at the cost that they are today, while an ACV policy will only reimburse you for their perceived value of the items. It is important that you understand which type of coverage that you are purchasing to be sure that there are not any surprises.
The benefits of getting this type of insurance are many. The first and most important reason is that it will protect against events like vandalism, fire, theft, and even an injury if someone is injured in your rental. By taking the time to read the fine print and ask questions of your insurance agent, you can be sure that you get the coverage that is best for your budget, you, and your belongings.