My Renters Insurance

By Compuquotes Team on March 27th, 2008

Renters Insurance

It is likely that most renters who don't invest in renters insurance just don't realize how much they might have to lose, either personal belongings or financial loss caused by legal liability. We've all heard of homeowners insurance, renters insurance provides the same benefits. Many are surprised to learn that they are legally liable for any accidents that occur on their property, even if owned by someone else.

Many renters mistakenly believe they are covered because their landlord has homeowners insurance. Their homeowners insurance is there to cover the structure itself, not the people occupying it or their personal belongings. These items can include your furniture, clothes, appliances, electronics, jewelry, and antiques.

A renter's insurance policy will cover any losses that are due to burglary, fire, smoke, lightning, explosion, riot, vandalism, hail, and water damage caused by plumbing. Some people don't realize how high the rates are for burglary. In fact there is a burglary in America every ten seconds. According to FBI statistics two thirds of burglaries are done in homes, condos, and apartments with an average loss of $1,004 per residence.

An added advantage to renters insurance is that it provides coverage from theft that occurs away from your residence as well as on. This protection extends to credit card loss, forged checks, or even counterfeit money.

With a personal property replacement cost option you can be assured that most of your covered property will be repaired or replaced without deduction for depreciation. Instead of recovering the actual cash value of the item, you would receive the purchase price for a new one.

This is why actual cash value (ACV) policies are much cheaper than replacement cost policies. ACV policies take into account that the item may be old. If you had an ACV policy and your 5 year old camera was stolen, you would get back the value of a 5 year old camera. However if you had a replacement policy and were to lose a five year old camera, you would receive reimbursement for a new camera of like brand, quality, and features as the one you had stolen.

The personal liability portion of your renters insurance is possibly the most valuable. If your child were to break the neighbor car window with a baseball, this option would cover those damages. Personal liability covers any property damage caused by you or your family, up to the policy limits.

This coverage would also come into play if your child were to accidentally throw a baseball at a neighbors face, causing broken teeth. Injuries, as well as damages are covered in the liability portion of your renters insurance.

To determine how much coverage is adequate for you simply calculate the collar value of everything you want to cover in your home. This can include clothing, furniture, televisions, stereo equipment, computers, jewelry, and antiques. Take into consideration how much it would cost to replace everything.

A renter poses the same risks as a homeowner. Even if you don't feel you have much as in personal property to insure, the personal liability goes a long way in the event you are sued because of someone else's injuries.

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