Renters Insurance

The average renter might not think renter’s insurance is necessary. If you don’t consider your belongings to be valuable, then what’s the point, right?

Actually, renter’s insurance is a must even if you don’t have high-value items. It covers you for medical expenses and liability in the event someone gets injured on your property. It covers temporary living expenses if you must vacate your rental after a disaster. It might even cover you if you unintentionally cause damage to the property.

In short, it’s worth it! In fact, many landlords require proof of rental insurance as a condition of your occupancy.

How much coverage?

Take an inventory of your belongings to estimate their value. Not only does this step help you decide how much coverage you need, but it also serves as a handy resource in the event of a claim. Photos and videos of your possessions are a great way to keep track of everything; keep them in a safe place.

Also, inquire about the property’s value. Your landlord or insurance agent can help you come up with a rough estimate.

Actual cash value versus replacement cost

Actual cash value reimburses you for items’ current value and factors depreciation into the equation. It might be worthwhile to add on replacement cost coverage so you have enough money to replace damaged items with new ones.

Renter’s insurance is not terribly expensive. It’s a small investment that pays off tremendously if you ever experience a covered loss.