Do We All Need Renters Insurance?

By Compuquotes Team on March 27th, 2008

Renters Insurance

Almost everyone has heard of homeowners insurance, but few rarely consider renters insurance. Some think that their landlord's insurance covers their personal belongings but that is simply not true. You property owner's insurance covers the building structure itself, and not any of the tenant's personal belongings.

A typical renters insurance policy will cover your furniture, clothing, and most other personal property in the event of fire, smoke, lightning, vandalism, theft, explosion, windstorm, or water damage caused by plumbing. For most items the insurance company will take your word for what you value the property at, but if you are insuring jewelry, art pieces, or any other expensive collectible then you will need to pay extra for a scheduled personal property endorsement. To obtain this coverage the insurance company will send one of their appraisers out to your property.

It is a little bit more expensive but you can get protection on your personal belongings on a replacement cost basis, rather than reimbursing you the depreciated value. For example if your camera was stolen while on vacation then you would receive $175 to buy a new one rather than the $50 you could have bought a similar used one for. This is important because if a natural disaster damaged all of your property you would get the money you need to replace all of your furniture instead of getting the money for a five year old couch and a ten year old TV.

You can also purchase the HO4 policy which pays for any additional living expenses that you are forced to pay due to a natural disaster or any case where you residence is rendered uninhabitable. This also covers living expenses if your home is being remodeled or fumigated. If your home or apartment were to be hit by a tornado then it is likely going to take more than a month to rebuild your complex or home. Living in a hotel and eating every single meal out can add up to really fast. If you invest in this policy then you won't have to worry about expenses such as these.

Most renters' insurance policies are priced at around $200 a year for $30,000 worth of coverage and $100 worth of liability. The actual cost of your renters insurance premium will depend on many factors. One of the main factors is your location if you are less than two miles away from a fire department then you will pay a lower amount than those who are further than two miles.

If you are living in an area with a high crime rate then you will pay a lot more for your monthly renters insurance than someone who lives in an area that has a low crime rate. If you live in an older apartment your premium will likely be higher because of the older structure and out of date wiring.

You can get several quotes online by visiting renters insurance company's website. You can get quotes quick and easy in as little as five to ten minutes because insurance companies are trying to make their websites as user friendly as possible.

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