Renters insurance for tenants is like homeowners insurance for a home owner. You shouldn’t take possession of the home unless you have it. One of the biggest myths is that renters are going to be covered under their landlords insurance policy. This is 100% not true. Your landlord is only insured to cover the structure of your home. You are responsible for all of the personal items inside incase of a fire or theft.
Renters insurance is going to be a lot like your auto insurance. You will be able to select the amount of coverage that you have and they will give you the monthly premium that you will pay. Compared to most types of insurance renters insurance is very cheap. Most will only cost you around $10-$20 per month.
Types of Renters Insurance Policies
There are two main policy types. There is actual cash value and their is Replacement cost. Basically if your company pays out actual cash value (ACV) you will also receive the value of the items at the time of loss. However if your company pays out replacement cost they will pay for how much it would cost you to purchase the item again. As you can imagine replacement cost will end up being a higher monthly premium but you will be paid out more in the event of a loss.
It is easy to save each month on the premium amount that you pay. Most agencies will give you a discount if you hold other policies with them. You can also get a discount for having fire detectors, fire extinguishers, burglar alarms, ect.
When it comes down to it, you never want to take the risk that you might lose everything especially for only $10-$20 per month. If you don’t have renters insurance call one today and get yourself set up.
Latest posts by Sean Bryant (see all)
- Plan in your 20s and Benefit in Retirement - September 23, 2016
- Save Money by Shopping the Seasonal Sales - September 19, 2016
- 4 Personal Finance Lessons You Must Learn Before you are 21 - September 13, 2016