Whether you are leasing or renting a home, most of the time it makes sense to have renters insurance that will cover your personal belongings in the event of a loss. Whether you have the latest technical equipment in your home or possibly just an expensive digital camera, renters insurance is an affordable way to guard against loss.
Renters Insurance: How Much Coverage Do You Need?
Many people may not realize the value of their possessions or what it would cost to replace them if they are damaged, destroyed or stolen. The amount of renters insurance that you need directly relates to the total dollar amount of your possessions. According to one major insurance company, the average dollar value of possessions for an adult is around $20,000.
It is not until the unthinkable happens, whether it is a fire, theft, or some other catastrophe, that we realize how much we have lost that is valuable or irreplaceable. This is but one reason why a renter’s insurance policy is an absolute necessity considering the uncertainty of modern times. Not only does a renter’s policy cover you for items in your home, it can also cover the loss of valuables that you take with you on vacation or keep in your car.
Renters Insurance: Estimating The Value Of Your Possessions
The easiest way to estimate the value of your possessions for renters insurance is to take an inventory with the year of items that you bought and estimate what it would cost if you bought those same items today. Make a list of all of your possessions such as stereo equipment, computers, sports equipment, furniture, appliances and books. You will also want to make a video of your possessions so that you can document that they are yours. A video will help with estimating. Should you suffer a loss, you can reasonably expect to recover the value of the items lost in addition to the loss of cash or other valuable items.
Renters Insurance: Not Just For Possessions
Many people assume that renters insurance is only for items that are in your possession – which is not true. Renters insurance can also cover you for events should someone get hurt while in your home. For example, if someone slipped and fell in your home, you could potentially be exposed to a lawsuit and need to hire an attorney. Many times, your renters insurance policy will protect you in these cases.
Renters Insurance: Too Expensive?
Renters insurance is probably cheaper than you think. For somewhere under a dollar a day, you can be free from worrying about your liability or property damage as covered above. There seems to be a general opinion that renters insurance is expensive – which is simply untrue. Some people also think that their landlord carries insurance for these types of things which is also not true. The truth is that landlords do keep their rental property insured, but only for damage or loss of the building, not the resident’s property. Lastly, you can also do certain things to reduce the amount of your renters insurance premiums – for example, you can install smoke detectors and have fire extinguishers in the home.
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