Renter’s insurance, also referred to as “apartment insurance” is highly recommended by all the insurance companies in LocalInsuranceQuoteOnline.Com’s network. Renter’s Insurance is for people who rent apartments, condos, or single family homes. Insurance policies that landlords carry do NOT cover the personal belongings of their tenants or their loss of use at the time of the loss.
When damage occurs to the property you are renting, you need to be sure that you have adequate insurance coverage for your personal contents, such as electronics, clothing, and jewelry, to name a few. There are often multiple discounts available for renter’s insurance coverage when the property is safeguarded with such things as smoke alarms, security systems and/or sprinkler systems.
Standard rental insurance policies will protect your belongings in the event of a covered peril – hurricane, wind, fire or theft. Liability coverage is also available for tenants, to protect you against the liability of someone else being injured while on your premise. When choosing renter’s insurance, pay attention to the policy limits. Be sure that the value of your possessions can be replaced within the limits of the insurance policy.
Finding the cheapest insurance premium does not ensure that you are sufficiently covered.
Certain valuable items may cost more to insure, such as fine art or antiques. If you are trying to save money, rather than exclude these items of value, just increase your deductible, which will keep your annual premium lower.
Besides deductibles being important when considering which renter’s insurance is best for you, ACV vs. Replacement Cost must be considered. In Standard renter’s insurance policies, the coverage is written as such that damage to the contents are covered on an actual cash value basis. Actual Cash Value (ACV), refers to the cost to repair or replace damage to your property AFTER depreciation. In a nutshell, the insurance company will calculate the replacement cost of the contents then calculate the depreciation of those items based on the actual age of the items. For example, if your bedroom set is burnt in a fire and it was bought 6 years ago for $4000, the insurance company may only give you $500 for the bedroom set, based on its’ current value.
There is the option for Replacement Cost Coverage, as an add-on to your standard renter’s policy. With Replacement Cost Coverage, your insurer will pay the cost to replace the damaged property regardless of the age of the items damaged. So, in the example of the burnt bedroom set, you would get the full value that you paid, or what it would cost for a comparable set.