When you lease a house or an apartment and a faucet begins to leak, a quick call to your landlord solves the problem. You probably also assume that the owner has insurance on the property. Also important is whether you as a tenant have insurance. If you don't, you should be aware of these benefits of and tips on acquiring renter's insurance.
Benefits of acquiring renter's insurance
The actual figure of what it will cost you to replace everything you own should the inside of your apartment be damaged might shock you. Even second-hand furniture has replacement value. When you factor in expensive items like a computer, television, jewelry and clothing, the figure should be convincing enough for you to consider buying a renter's insurance policy.
Renter's insurance is an inexpensive way to protect your possessions and yourself against liability. In case you think otherwise, no, your landlord's property insurance does not cover your possessions. For a few dollars a month -- depending upon the type of coverage you need -- you can protect your possessions and yourself against loss and liability. A renter's insurance policy will pay for itself should you ever have a claim.
Too many people have lost everything because they didn't have this type of policy when a home fire, vandalism or smoke damage occurred in their rental. It's one thing to suffer an unforeseen event. It's another to risk a huge financial loss because you didn't have the foresight to purchase renter's insurance.
Tips on buying renter's insurance
Shopping online, then comparing policies and rates, is easy. Most sites have connections to insurance agents in your area.
Other tips include:
Safety discounts. Insurance companies look for safety features inside your rental like smoke detectors, burglar alarms, fire extinguishers and deadbolt locks on doors. You might be able to convince your landlord to put in a fire extinguisher or upgrade your front door lock. It might even be worth putting them in yourself, depending upon how much of a discount the insurance company will offer for having them.
Types of coverage. There are two different types of renter's insurance: cash value or replacement cost coverage. A good tip is to choose cash value coverage that allows for depreciation. Why pay to insure the value of a new computer when yours is five years old?
High deductible. If you always have money in the bank, choose a renter's insurance policy with a high deductible. When you file a claim, your deductible is the out-of-pocket cost that you pay upfront before your policy pays. Policies with higher deductibles lower your premium payments.
Insurance packaging. Ask your car insurance company if it offers a discount for packaging your car insurance policy with a renter's policy. If it doesn't, find a company that does.
Stop smoking. Nonsmokers always get reduced rates for insurance policies.
Maintain good credit. Most insurance companies view good credit holders as less of a risk and offer them a discount.
Understanding the benefits and tips on acquiring renter's insurance should prompt you to investigate what a policy will cost. Remember, you can't put a dollar value on peace of mind.
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