sep The Low-Down on Rental Insurance

The Low-Down on Rental Insurance

May 20, 2013 – 10:05 am

Most apartment complexes have insurance to cover the cost of apartments in case of fire, natural disasters or any other disaster. Many tenants never think to get insurance for their safety because it will take away from paying their rent and utilities or it never crossed their minds. Having renters insurance is a must for renters because in case of fire, floods and disasters it can protect your personal belongings from being a total loss. Get the low-down on renters insurance by soaking in the following rental information.

Each policy is made for each kind of rental property. There’s one for renters, condo owners, and so on. Each policy covers many kinds of disasters ranging from fires and snow to explosions and theft to accidental damage and damages caused by someone else. What they don’t tell you is that flood and earthquakes is not a part of the policy. Anyone living is a high risk flood or earthquake area needs a separate insurance policy or rider. Some policies come with liability insurance and medical coverage. It’s important to read the policy to see exactly what it will and will not cover before signing it.

When it comes to reimbursement from insurance companies it goes one of two ways: actual cash value or replacement cost. Actual cash value, or ACV, is the value of the property at the time of the loss. Instead of getting a check for everything lost a replacement cost will replace the property. Each item will be replaced with the cash value that it would cost to get a new one. So the actual cost for everything will be in a check but the amount will be larger. In return it will cost you more in premiums to get the replacement cost option than the actual cash value option. No rental insurance will cover jewelry, guns and other highly expensive items. That will have to get a separate policy or a rider.

The best renters insurance is based on what you want out of it. Take inventory and figure out the cost of each one. The insurance company is going to need proof of the item and the cost. Take a picture or videotape your belongings and the apartment interior. Gather receipts of big ticket items. Keep all of it in a fireproof safe or area. The total cost of everything will be the amount you should get. Get a little more than the cost to cover the price of moving to a temporary area. The deductible is how much you’re willing to pay yourself. Higher deductibles come with a lower monthly payment. However, the insurance won’t pay out a lot because you will have to pay most of it yourself. A low deducible means more money paid per month, but more money the insurance will have to shell out of their pocket.

Location is a factor in the amount of money paid per month. Renting in a high crime area will cost you more than renting in a low crime area regardless of precautions. If there were previous claims of crime, explosions and disasters in the same area the insurance will also go up. Dog owners may have a hard time getting renter’s insurance. Certain breeds may be more hazardous to insurance companies than others. Because of the high risk insurance companies won’t write a policy at all. The goal is to get quality insurance at a low price. With this advice you are on your way to making that happen.

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