Renters Insurance

Many people who rent an apartment or condo don't understand the value of renter's insurance. While homeowner's insurance is something that the general public is aware of, renter's insurance is another matter.

The Importance of Renter's Insurance

If you are a renter, your landlord has insurance to cover the building you live in. However, your personal property is not covered in the event of fire, theft, or another disaster. Many people go without renter's insurance mistakenly thinking that either they are covered by their landlord or that they are safe from events that would ruin their property.

If you think about it, when you live in an apartment or condo, you are actually more at risk for damage to your property. You can't control whether or not your upstairs neighbors have a water pipe burst, or if the family down the hall has a fire in their kitchen that could possibly spread throughout the building.

Renter's Insurance Coverage

Having renter's insurance is essential to protecting your possessions. Generally, a renter's insurance policy will cover stolen, damaged or destroyed household goods. It will also provide liability coverage. There are two basic types of renter's insurance policies:

Broad Form (HO-BT) – covers all of your personal property against the events specified in the policy

Comprehensive Form (HO-CT) – protects your personal property for all events not specifically listed in the policy.

Most policies will only pay the actual cash value of your losses. This means that if you have possessions that have depreciated in value, you will receive compensation for their value at the time of the damage. If you want to receive enough money to replace those items, you may need to pay extra in your premium.

As an additional bonus, renter's insurance policies come with liability coverage. This will cover your costs if someone is injured in your apartment or condo.

Shopping for Renter's Insurance

As with other types of insurance, the best way to find a good renter's insurance policy is to shop around. Taking the time to research renter's insurance rates can help you find the best price and customer service.

Your renter's insurance premium will be determined by many factors, including, but not limited to where you live and your level of coverage. Costs can be controlled by keeping a high deductible or by installing protective measures like smoke and fire detectors. You may also be eligible for a discount if you buy auto and renters insurance from the same company.

By Courtney Ramirez