If you’re currently renting or if you plan to rent an apartment soon, now is the perfect time to begin researching your options for renters insurance. According to USA.gov, your property manager will have an insurance policy on the actual apartment, but that likely does not include coverage for any of your personal property that is inside. It’s very valuable to have a form of protection in place in the event that your personal belongings are damaged or lost due to a variety of occurrences, and often, it is a required part of the rental process.
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Start out by researching insurance companies in your area. If you already hold other forms of insurance (such as auto or life) with a particular company, it’s worthwhile to inquire with them about a renters insurance quote – often, you can receive a discount for bundling your policies.
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Before requesting quotes, make a list of personal belongings and estimate their value. This means everything – clothing, kitchenware, electronics, furniture, and so on. You’ll want to be as accurate as possible, so that the coverage amount you select will actually replace everything you own in the event that you lose everything in your apartment. It’s also a great idea to take photos of valuable possessions. Occasionally, there are high-value items that have overall coverage limits. This includes, but is not limited to, jewelry, gold, firearms, and money. Ask the insurance agent about an endorsement to protect such items at an additional cost.
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You may have the option to choose between Actual Cash Value (ACV) coverage or Replacement Cost (RC) coverage. ACV only reimburses you for the value of the property at the time of loss minus depreciation for age and wear, so if you have a 6-year old sofa that you paid $1000 for, it may only be worth $200 today. RC coverage allows you to replace property (of similar kind and quality) at current market prices.
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Ask all insurance companies what the policy covers – occasionally, some risks, such as flooding, are omitted and you must have a separate policy to cover those. Also be sure that the policy covers living expenses in the event that your apartment is unlivable due to extensive damage.
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If you’re getting ready to move to a new place, be sure to set up your insurance coverage to begin on the first day of your tenancy – you’ll want your possessions to be protected starting from day one!
The investment that you’ll make for a renters insurance policy is well worth the cost. After all, it’s much better to be prepared rather than risk losing your valuables! Renters insurance is very reasonably priced and shouldn’t be out of reach for you. For instance, the amount of money you’d spend on two lattes at a high-end coffee shop could possibly pay for a month of renters insurance!
