With recent economic troubles, more people are turning to renting homes and apartments rather than purchasing. Most property owners require tenants to purchase renters insurance but many people are still uninsured. The reason many people choose not to purchase renters insurance is because they are unsure of the benefits or they believe the policy will be too expensive.
What it Covers
Living in an apartment can leave many unknown factors when it comes to your possessions. If your neighbor’s bathroom floods causing damage to your brand new television and you don’t have renters insurance, you may be out of luck. Renters insurance will cover any damaged items due to flood, fire, and theft. In addition to covering your property, insurance can protect you from potential lawsuits arising from injuries sustained within your apartment. If a guest is injured in your residence, the damages will be your responsibility not the property owner’s unless the injury was caused by negligence on the owner’s part.
Renters insurance is very affordable usually costing three to five hundred dollars per year depending on the amount of coverage you need. The cost of your premium will depend on the value of the items you wish to have covered. You will want to account for all of your possessions and their value before applying for a policy. If you leave out any items when purchasing your policy, those items may not be covered in the event they are damaged. It is also important to notify your insurance company if you make any valuable purchases that will be held within your rental space.
How Much Coverage
You can choose how much or how little coverage you would like to purchase. If you are facing a tight budget, you may consider purchasing a smaller policy. You will still want to be able to cover a majority of your expensive possessions but you may not claim some less valuable items. Some policies will not require a list of physical possessions but rather ask you for an estimated value of the items as a whole.
The application process is quick and simple. You will answer a few questions regarding the location of your residence and the value of the possessions within the residence. You will then choose how much coverage you would like. Once you have completed the application, your agent will give you the cost of your premium based on the value of the policy and the deductible you will pay for each claim. You can increase or decrease the deductible in order to raise or lower your premium cost.