If you are renting a home or apartment, then renters insurance is a must. This is because, while your landlord is responsible for insuring the physical structure of your rented space, they have no obligation to cover your personal belongings or personal liability. Fortunately, renters insurance offers coverage for your damaged or lost belongings and any liability issues you get caught up in. To ensure that you have the comprehensive coverage that you need, here’s what you should think about when securing renters insurance.
As mentioned, renters insurance is designed to protect your belongings. To ensure that your policy is offering the comprehensive coverage that you need, you need to determine the value of all your possessions. While itemizing your possessions is tedious, taking this step is better than finding out that you do not have coverage for major loss events.
Actual cash value refers to the cost if an item with depreciation taken into account. Replacement cost refers to the actual purchase value of an item without depreciation. When you secure renters insurance, you have the option to secure coverage for your belongings’ cash value or replacement cost value. Please note that, because replacement cost policies offer more coverage, they will be more expensive than their cash value counterparts.
In addition to protecting your possessions, renters insurance also provides personal liability coverage. Personal liability issues can arise when someone is injured while in your rental property, when you or a member of your household accidentally causes losses or injuries to another party, or when a pet causes harm to another. Because personal liability suits can be very costly, it’s important that you have enough coverage in place. To secure an adequate amount of personal liability coverage, speak to a trusted agent so they can get a better understanding of your personal risks.
This is what you should think about when securing renters insurance. Do you have additional questions about your renters coverage? If so, then contact the experts at Mike Leonard Insurance Agency. Our dedicated team is eager to find you the right coverage from one of our many carriers, including: Kemper, MetLife, Nationwide, Travelers, Safeco Insurance, Progressive, and American Strategic Insurance.