Low Cost Renters Insurance, Benefits of a Renters Insurance Policy
Most renters often wonder why they should go for a renter insurance policy when they don’t own the house. Well for starters, even though as a renter you may not own the property you will certainly own some if not all of the things in it. Many apartment complex insurance policies do not cover damage to personal belongings which means that the property owner will be paid for the structural damage but you will get nothing to make
up for the loss of your valuable, this makes getting a renters insurance policy crucial.
There are several renter’s insurance policies in the market each with its unique set of insurance coverage but many of them will cover damage due to fire, riots, theft, vandalism and mischief and natural calamities.
If you opt for replacement cost coverage, it will pay for the actual cost of replacing an item lost due to damage. For instance, an old refrigerator may have cost $500 five years ago but it may be worth substantially less at the time of fire yet if you were to buy a new refrigerator today you would have to shell out $500. So if you have replacement cost coverage you will be paid $500 and not the written down value of the item.
A renter’s insurance policy can be very valuable if you intend to house expensive items such as jewelry, high end electronic gadgets, valuable antiques and artifacts. But you need to make sure that you let your insurance agent know about these items even though it may increase your premium rates
Many times the property may become uninhabitable due to damage caused by fire or burst pipes. In such a situation you will have to take care of the expenditure involved in procuring alternate accommodation. But with a renters insurance policy you will be covered against such eventualities. You can get as much as 30 to 40% of the total value of your insurance policy to cover additional living expenses. The insurance company will pay for alternate accommodations while the home or unit is being repaired.
There are also other benefits associated with a renter’s insurance policy like liability coverage which means that if somebody has an accident in your apartment you will be covered for any costs that you may incur up to your liability limit. Incase the person chooses to take the matter to court; you will also be covered for legal expenses and the amount that the opposing council may win in a court judgment up to your liability limit.
The premium rates for a renter’s insurance policy will depend on several factors like additional coverage, the insurance company, your credit history, history of claims and your deductible. However according to the III a standard renter’s insurance policy without additional coverage for expensive items should cost you between $150 to $300 per year.