Tenants rarely think of property insurance. After all, when you are just renting the flat or house, why should you pay for the property’s insurance needs? However, certain situations are unprecedented and can cause massive losses, such as theft and fire. This is where a renter’s insurance policy may come handy. This is a special kind of insurance that covers the belongings, goods and liability of the tenant within a rental home or property. Below are some of the things you need to know!
Things you need to know
First things first, renters insurance is not compulsory. However, increasing number of landlords and homeowners are now looking for tenants who have such policies. Depending on your requirement, you can either choose between two kinds of policies. The first one is known as an Actual Cash Value policy. This kind of policy will pay for the actual price of the damaged goods and belongings, after considering depreciation and other aspects. It’s pretty obvious that you cannot get a big claim in the first place, and therefore, the premiums are pretty low. On the other hand, a Replacement Value policy offers you the actual market price of a damaged product, which will help you in replacement. The terms and conditions may vary, but a RV policy is expensive but highly beneficial.
What kind of policy should you choose?
If you have expensive goods and appliances, it’s wise to go for a Replacement Value policy. This kind of policy will cover all kinds of belongings, subject to a few terms. In most cases, tenants don’t even realize the actual value of the goods they own, and hence, they end up choosing an AV policy. Please note that damage caused by certain natural calamities like earthquake and flood might not be covered under a standard policy. Also, for those who have high-end gadgets, appliances or jewelry, it might be necessary to go for extra coverage. Talk to insurance companies and ask for quotes, so that you can know these aspects better. Such kind of policies should also offer cover for your liability claims, as well. For example, if someone gets injured on the wet floor of your home, the policy may cover for your liability.
Lastly, comparing renters insurance options might be confusing. Check online to know more about tips and suggestions on choosing the right one. Also, you might not be aware of the process of filing for a claim, which must be confirmed in advance.