If you rent a property, then you should strongly consider renters’ insurance. Your landlord may need it, but even if they don’t, it is a wise investment. Remember that your landlord’s insurance won’t protect your possessions in case of a fire, natural disaster, or another issue.
But how do you choose the right renters’ insurance?
The Deductible
Pay attention to the deductible of the insurance policy. This is the amount that you will have to pay before your insurance policy starts to cover things.
The Coverage Dollar Amount
Look at the coverage for the policy, with a focus on the dollar amount. This will affect how much your policy is worth, but it is crucial to ensure it can cover most or all your possessions.
Replacement Cost Vs. Actual Cash Value
There are two main categories of renters’ insurance. ACV or actual cash value policies are more common and reimburse you for the worth of your property before losing or damaging it. Replacement cost policies will give you the amount you would need to buy a replacement.
What Is Included
As with any other insurance policy, pay close attention to what situations and items are included and which are not. Pay particular attention to expensive items that are attractive to thieves, including jewelry and guns.
Many policies will limit the coverage for these items, and some may completely exclude them. In that case, you should be able to add coverage for them when getting insurance.
In terms of situations, not all policies will cover damage or losses from floods or earthquakes.
The Premiums
Of course, you also need to consider the premiums. Remember that your premium will depend on the dollar amount of coverage, deductible, and inclusions. It will also depend on your location and whether you have had previous claims.
Whether to Bundle
You may be able to get a discount if you bundle your renters’ insurance with your auto insurance or any other insurance policies you have.
