One of the most responsible things you can do as a renter is to purchase renter’s insurance. You cannot stop bad things from happening, but you can offer yourself some protection in case something does happen. However, before you go out and purchase a renter’s insurance policy, there are a few things you need to know.
Renter’s Insurance Does Not Cover Everything
While your insurance policy will cover the cost of a fire or a burglary, there will be certain things that they do not cover. For example, most renter insurance policies do not cover damage from earthquakes or floods. Before you purchase your plan, go over everything your policy covers and does not cover so that you have a complete understanding of the coverage.
Your Landlord’s Insurance Coverage
Your landlord may have a great insurance policy on the building, but it does not mean it will cover the cost of replacing your items. For example, your landlord’s insurance will not cover the items in your apartment that are stolen. The only way that your belongings will be covered by your landlord’s insurance is if the items are damaged from a problem occurring with the building itself.
Replacement Cost vs. Value
It is also important to understand what your insurance will cover when it comes to the value of your belongings. Many policies cover the actual value of the item lost or damaged. For example, if you purchased your television four years ago, the policy may only cover the actual value of the television as it is today. If you want your coverage to include the actual replacement costs of your items, be sure to discuss this with your insurance agent.
Many landlords require tenants to purchase renter’s insurance prior to moving in. If your landlord has not required this, you should still consider purchasing this insurance for your own protection. While you can hope that you never need it, the fact is that anything can happen and you will sleep much better at night if you know that your belongings are covered in the event of a fire, a burglary, or some other event that damages them.