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Renters Insurance

Statistics show more and more people are continuing to rent every year rather than buy homes. With this in mind if you’re planning on renting you will need renters insurance. Renters insurance is designed to cover the cost of replacing your belongings in instances such as accidents, theft, or natural disasters. To understand how much renters insurance you will need, you should calculate the value of all of your belongings. You will also need to factor in liability coverage, in cases in which someone is injured on your property.

Be aware of what your policy does and doesn’t cover. Different policies will not cover all situations, for example, floods may not be covered by all policies. Take into account your situation and whether or not your policy covers everything that you need it to.

There are two coverage types in renters insurance. One coverage type is Actual Cash Value. This coverage accounts for depreciation of items that you use every day, meanwhile, the other coverage type, Replacement Value, does not. In a replacement policy, the insurance would pay you for the cost to replace the item rather than what the item was worth after use.

Your insurance policy will also have deductibles. When you opt for a higher deductible you will be paying more to get your return in the case of a disaster, but your monthly premiums will be lower. Depending on how susceptible you are to accidents we recommend keeping your premiums lower and your deductible higher in the case of an accident.