Renters insurance is the least used coverage. Most of the people do not know about the renters insurance and the rest do not care about it. According to a survey, 96% of house owners have insured their house, but only 35% of the people who are renters have insurance.
What is renters insurance?
Renters insurance can be classified into three categories. It would protect the personal properties in case of fire, theft or vandalism. If someone is hurt on the property, it would protect the renters from lawsuit and would cover their medical expenses. If the individual loses the house due to some mishap like a storm or fire, the insurance would take care of the temporary lodging.
How much will it cost?
The renters insurance would cost on an average, $200 per year, which comes down to $15 per month. When compared to the thousands of dollars worth products in the house, the cost of the renters insurance is very less.
One needs to get the right set of coverage. It is important to take a list of all the essential things in the house and make an estimate of the value. This would help to take up replacement cost policy. This policy would add 10% to the cost of insurance, but would pay for replacing all the belongings as per the list at today’s rate. It would deduct a small amount for depreciation.
If you have valuable items in your house like furs, collectibles, expensive jewelry and others, one can opt for floater, to have additional coverage. One would need a receipt of an appraisal for taking a floater.
There are a lot of rental insurance providers and not all rental insurances would provide a complete coverage. It is better to evaluate the coverage by comparing more than two coverages. Asking for referrals from co-workers, friends or family would help to find the best insurance providers. Make sure to check the rating of the insurance company with AM Best or Standard & Poor. Learn about the complete coverage, deductibles and limits, to understand whether the insurance would provide a complete coverage. It is also important to review the policy annually. It is because the number of belongings would increase, due to the purchases. Remember that the house owner’s insurance would not cover any damage or provide coverage to the renter. Thus, renter would require renters insurance, at any cost. Even if the house owner does not have insurance for his house, the renter can take up insurance for his belongings.