Renters insurance provides another layer of protection for your finances. Whatever you’re renting, whether it be a duplex, condo, apartment, or townhouse, you ought to consider renters insurance. Losing all your personal belongings can be devastating when there’s no way to replace them without sacrificing your savings accounts. Renters insurance provides peace of mind so you won’t be blindsided when disaster strikes.
What Is The Purpose?
Without renters insurance, there’s no guarantee that you’ll be able to recover any stolen possessions. But this type of insurance goes deeper than just possessions.
This coverage applies to instances where items are stolen or destroyed. In this case, you’re reimbursed according to one of the two types of coverage you choose. You can also get liability protection with this in case another person suffers an injury at your residence, who then files a lawsuit against you. While there are limitations to how much renters insurance will provide in terms of legal defense, it will give you breathing room.
In the event that the home you’re renting is destroyed, you can get additional living expenses (ALE) coverage. With this, you will have coverage for expenses such as helping pay temporary rental or hotel bills while the place you are renting is being repaired.
How Does Reimbursement Work?
Your reimbursement depends on the type you sign up for. You can get replacement cost or actual cash value coverage. Replacement cost is the more expensive of the two, but it provides greater coverage. You’ll be given enough to be able to purchase new versions of the belongings you lost. Actual cash value, on the other hand, covers stolen or damaged items according to their current estimated value at the time of destruction or theft.
In order to get the most out of your renters insurance policy, you need to assemble a list of what you own and what each possession is worth. If your belongings are considerably expensive, you may also want to add a floater to your policy to increase your level of coverage.
What Isn’t Covered?
Coverage exceptions apply to how your belongings were destroyed. Renters insurance covers damages caused by fires, windstorms, vandalism, and lightning.
However, renters insurance does not cover damage caused by floods and earthquakes. In fact, you will need to purchase flood and/or earthquake insurance separately.
What Else Will I Need It For?
You may not need renters insurance just for you, but for your landlord. Many landlords mandate that their tenants carry proof of renters insurance because this type of policy is also a form of liability insurance for them.
Get Renters Insurance That Belongs To You
At The Coleman Agency, we aim to help you maintain what you’ve worked for. When you’re working hard to pay bills, the last thing you need is an event that puts you in a financial bind. This is one of the many services we provide, and when you work with us, you will get the policy you need at the best price. For more information about renters insurance, give us a call today at (803) 802-7507.