Renters insurance is a special form of property insurance meant for tenants. Certain situations like theft and fire are unavoidable, regardless of the size, type and location of the property. Renters insurance is designed to protect your personal stuff and belongings from such situations and liability claims. Confused? We have a few pointers below, which might help you.
- First things first, renters insurance is not a compulsion, although many landlords and homeowners might insist on it. Before renting an apartment, make sure that you check with the homeowner for any such requirement.
- Such kind of policy covers for both belongings and liability. For example, if the property had unexpected water damage, or someone was injured at your home, the cover will help in paying for your liability, as per the terms and conditions.
- It’s important that you decide on the need for extra cover. Most of the standard policies may not offer benefits/claims in case of natural calamities like flood and earthquakes. Also, if you have expensive stuff and jewelry, some goods might need additional coverage, in line with the insurer’s policies.
- Renters insurance can be divided into two categories – Replacement Value policy & Actual Cash Value policy. With an Actual Cash Value policy, you will only get the actual price of the damaged goods covered under the policy, after considering factors like depreciation. Since the claim amount is less, the premiums are also considerably lesser.
- A Replacement Value policy is a much better deal, despite the increased premium. The insurance company will pay for the current market cost of the concerned goods, which is like getting money for ‘replacement’. If you have expensive products at home, it’s best to choose for this kind of policy.
- Just like any other insurance, comparing policies can be tricky for sure. There are portals where you can find details of the different insurance options along with comprehensive comparisons, which can be handy for comparison.
- Should you pay for renters insurance? Experts agree that such kind of cover can be actually beneficial, given that the premium for each month is close to that of a premium pizza. Of course, you need to compare and understand the different terms, conditions and details of the policy before signing the papers.
Lastly, make sure that you talk to the insurer about seeking a claim. That’s an aspect that many customers don’t know about!