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RENTER INSURANCE
What Does Renter Insurance Means?
In layman language it provides you the coverage for your personal stuff from any kind of damage and loss. Let us take an example to understand this term. Monika gets a job in a new city and she decided to live on a rented flat. She shifted to a flat with her personal belongings like jewelry, expensive clothes, furniture, etc but one day the building caught fire and she lost everything which belonged to her. Now she will have to buy everything again or may be due to shortage of fund she might not invest on everything she had lost but on the other side the landlord who had a building insurance gets the reimbursement from the insurance company I.e. the reimbursement of everything which the landlord owned less your belonging. Now in such a case had Monika covered her belongings with renter insurance she could have recovered the insured amount what everything that she had lost and would not have to incur extra expenditure on buying things again Now the choice is yours whether you want to recover your personal belonging from your pocket or you want to get it covered by the renter insurance. TYPES OF RENTER INSURANCE The premium of your renter insurance depends on the type of renter insurance you choose. Actual cost renter insurance: Under actual cost renter insurance the company takes into account that your item undergoes some wear and tear so at the time of claim you get the depreciated value of your item. Let us take an example your laptop got damaged and you file a claim then at that company would pay you the market value of your damaged item minus depreciated value of your item. It is important to note that under actual value renter insurance you get the lower premium and you might require to add on some extra money to recover your item. Replacement cost renter insurance: Under this at the time of claim the insurance company gives you the current market replacement value of your item. Let us take an example if you lost your phone which was purchased one year back and you filed a claim then at that time your insurance company would offer you the current market replacement value for a new iphone of similar specifications . It is to be noted that RCV premium is always higher than the premium of Actual cost renter insurance. The advantage in both the category is that under actual cost renter insurance you need not have to pay a higher premium and which can be afforded by anyone and plus while choosing the actual cost renter insurance you can prioritize your items. The advantage of RCV is that the premium is higher as you will the get replacement cost of your item and which could be enough for you to replace your stolen or damaged item. IS IT EXPENSIVE OR AFFORDABLE? According to the Independent Insurance Agents and Brokers of America, the average cost is only $12 per month, or $144 per year. Now that’s not really expensive, even a college going student can afford the renter insurance. Renter insurance would be a wise idea if you are living on a rented flat. It is important to note that renter insurance does not cover all your personal belongings like if you have exceptionally high value belongings then for that you’ll need to add the additional coverage. For the assistance you can contact your agent. While buying renter insurance you will come across the following choices: Personal Property: Under this you can decide how much coverage you need for your personal property and for this you can prioritize your items to be covered. Please note that it covers a minimum of $2500 worth of your personal items. Liability: Under this you would have to choose the liability limit for the claim and the legal expenses. The minimum liability limit is $100,000 and it can exceed upto $500,000. Additional Rider: You only require this if you are having an expensive items like jewellery or any kind of artwork. WHAT RENTER INSURANCE BASICALLY COVERS? Renter insurance basically provides coverage from damages caused by the following risks or perils: Fire, lightning
WHY TO BUY RENTER INSURANCE? Below are some of the good reasons for buying renter insurance. 1. Affordable. According to the Independent Insurance Agents and Brokers of America, the average cost is only $12 per month, or $144 per year. Please note that the actual cost depends on the coverage you choose and the city where you live. 2. Your renters Insurance can Protect your personal property: This protects your personal property from any kind of losses example be it your loss caused from fire fighting, Explosion, theft, riot, windstorm, etc. Our personal property has both the monetary value as well the emotional value which we sometimes underestimate the value of it but in actual according to esurance.com, the average renter owns about $20,000 worth of personal property.. 3. Renter insurance provides you the liability coverage: If someone gets injured at your home and you have a renter insurance then at that time you can get a medical or legal expense from the insurance company. 4. Renters Cover things when you are not at home. Once your belongings are covered under renter insurance then be your belongings at your home, car or with you while travelling it will be covered from any kind of losses. 5. Renter insurance provides you the additional living expense if your home becomes uninhabitable. Renter insurance also covers the additional living expense if your home becomes uninhabitable due to any damage. It gives you the cost for temporarily living somewhere else. STRANGE OR ODD THING YOUR RENTER INSURANCE COVER Did you know if you opt for a good renter insurance you can cover the theft from your car. If you are fond of waterbed then your renter insurance can even provide the coverage for that. If refrigerator stops working and all your food are spoiled then your spoiled food can also be covered under personal property coverage. How Can we Help you? We the Neal Insurance do all types of insurance and we quote all 50 states in the United States. Our motive is to provide the insurance plan at the best possible rates to suit your pocket. We are always available to help you, assist you and give you the best possible suggestion for your insurance plan. If you have any query please feel free to contact us anytime. It will be a pleasure to help you. Looking forward for building a long term relationship where we can grow together. Links for the referral : http://www.investopedia.com/articles/personal-finance/082714/6-good-reasons-get-renters-insurance.asp https://www.trustedchoice.com/renters-insurance/ https://www.allstate.com/tools-and-resources/renters-insurance/what-does-renters-insurance-cover.aspx https://www.homesite.com/insurance-resources/home-insurance-articles/actual-cash-value-vs-replacement-cost.htm http://www.trulia.com/blog/what-does-renters-insurance-cover/ |
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