Renters Insurance Overview
Many people don’t realize of the dire consequences of not carrying renters insurance. Renters insurance is simply an insurance policy that covers your personal belongings in the result of fire and theft. (Liability coverage is automatically included)Tenants often assume that their contents will be covered under their lease agreement, WRONG! Landlord’s and homeowners policy will not be liable to cover any belongings other than their own.
*As a policyholder, you have an option to choose from a replacement cost coverage or an actual cash value basis for your contents. If you decide to select an actual cash value coverage, depreciation will automatically apply to your contents, reducing your premium cost. Your contents also have a worldwide coverage, which simply means that if you were to face a loss anywhere in the world you will be fully covered.
*Another important factor that I must touch up on is the liability portion. Due to the “liberal” country we live in it is easy for you to be sued from a third party. Any type of negligence or inflicted injuries to the third party, whether or not it was accidental, it will increase the likelihood of being legally responsible to compensate for any loss incurred. The minimum liability coverage that comes with the renters policy is $100,000 however, you may choose to increase it for an additional premium.
Consider purchasing renters insurance if any of the following applies to you.
1. Possession of a dog
2. Possession of expensive jewelries, musical instruments, paintings, and the like.
3. Violent or aggressive children
4. High value of contents other then specific items mentioned.
Renters insurance is very affordable due to the minimum amount of claims being filed. A basic renters policy will cost you anywhere from $40~$100 a year.