Many renters don't stop to think about what happens if there is
a fire, someone breaks in and steals their new TV or stereo, or
a visitor slips and falls on their property. The sad truth is;
you will be responsible! While your landlord has insurance that
covers the actual building, that coverage does not include your
personal property or liability for injuries which occur in the
space you rent ~ be it an apartment or a house and yard.
If a fire should destroy or damage your home, your landlord's
insurance will cover the structure. It won't cover damage or
loss of your belongings. Neither will it provide for the cost of
temporary housing for you and your family.
You may think you don't own enough personal property to make the
cost of insurance worthwhile. You're probably wrong! If you sit
down and add up the cost of everything you own, you may be in
for a big surprise. Consider what you have invested in such
things as:
* Furniture and accessories * Electronics like TV, stereo,
computers * Small appliances like microwaves, toaster ovens,
etc. * Clothing * Art work like paintings or prints * Dishes,
silverware and cookware * Sporting equipment * Books * Jewelry
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your
property and decides to sue you for medical costs and more? It's
a scary thought, isn't it?
Are you beginning to see why rental insurance may be a very wise
investment?
The cost of rental insurance is based on several factors:
* The dollar amount of your coverage
* Deductibles
* Whether you choose to be reimbursed for Actual Cash Value or
Replacement Costs (more about that in a minute)
* Where your rental property is located and the number of
previous claims made, not only by you, but by others living in
the same area.
Let me explain the difference between Actual Cash Value (ACV)
and Replacement Costs. ACV is the value of your property at the
time a loss takes place. For example, if your television set is
five years old, it's valued at much less than if it were brand
new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you're paid whatever
it costs to go out and buy a new TV with similar features.
Insuring for replacement cost raises the amount of your premium
so it's a good idea to get quotes for both ACV and Replacement
Cost policies. Then you can decide which option fits your needs
and budget.
Another thing to keep in mind is that jewelry, valuable
collections, and guns are usually covered under a separate
policy or "rider". If you own these kinds of items, be sure to
tell your insurance agent. You don't want to find out after
disaster strikes that they aren't covered or that they aren't
covered for their true value. One way you can reduce the cost of
your rental insurance is to check with whichever company insures
your car. If they provide rental insurance you may be eligible
for a multi-line discount.
Rental insurance may be worth the investment just for the peace
of mind it offers you.
About the author:
Kyle Thomas Haley has been helping people relocate on the
Internet since 1999 with Apartment and Relocation Websites:
The Apartment Net
Relocation
and Moving Guide
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