http://blog.hometeampm.com/renters-insuranceMany people don’t get renter’s insurance because they don’t really see a reason for it. They don’t own anything that is worth any money so they don’t want to spend money every month just to protect their cheap furniture and other accessories.
However, renter’s insurance is important. Even if you don’t own anything that is worth much, if you add up all of the things that you do own (clothing, television, furniture, bedding, and much more), the cost really adds up. Could you really afford not to have insurance?
It is not as simple as getting insurance as a renter. Though most people try to get the cheapest plan possible, there are actually more things to consider when you decide to get insurance. Here are some things to consider when choosing the right insurance.
Understand your monthly cost and the deductible. Once you decide to get insurance, you are going to have several plans to choose from. Instead of just looking at the monthly fee, take the time to look at the deductible. This is the amount of money that you will need to pay before your insurance kicks in.
Usually, the cheaper that your insurance is, the more expensive your deductible will be. Though you may only pay ten or twenty dollars a month, you may be responsible for a thousand dollars (or even more) before your insurance will cover your possessions.
Look at the coverage. There are different types of policies so make sure that you understand each one before you decide which one you want or need. A replacement-cost policy will pay to replace your possessions while a cash-value policy pays only what the items are worth when they are stolen or damaged. Though a replacement-cost policy can be more expensive, it can be worth it if you have expensive jewelry or artwork.
You may also want to think about getting a floater to give you even more coverage if you own anything really expensive. Your insurance company may require receipts or appraisals for floater coverage.
Look at what is covered. Most policies will cover any damage or loss due to fire, lightening, theft, vandalism, and some other weather-related damages. Many cover water damage, though not all will. Some cover floods and earthquakes, while others do not. For this reason, look at the fine print and figure out exactly what is covered in your plan.
If you can’t get the coverage that you need, you may want to look into another insurance company so that you are covered.
Look into liability. Liability insurance is absolutely necessary. They will help if someone sues you because they get hurt in your apartment. Most liability insurance will help with medical bills too, protecting you even more.
Don’t be afraid to ask about discounts. Most insurance policies will give discounts for people for various reasons. You may be able to get a discount if you have more than one policy (automobile and renter’s insurance). They may also give you a discount if you have special safety things like extra locks, extra smoke detectors, and more. For this reason, don’t be afraid to see if you can get some sort of break in your payment.
Though it can be hard to find the right insurance plan, it is worth it in the long run. You don’t want to be stuck in an emergency with no insurance (or not enough) and no money to replace all of your valuable things. Since each plan and each company is completely different, it may help to discuss your options with someone who deals with insurance because his or her knowledge may make the whole process go even smoother.