Saturday, February 20, 2010

Renter's Insurance : When Bad Things Happen

Renter’s insurance is an uncomplicated and important way to assist you protect your belongings. Living in an apartment, condo, or dorm doesn’t mean your stuff is safe unless you have it insured.

It’s scary how fast things can go up in smoke

I’d never even considered renter’s insurance until I almost lost it all. While I was living in my first place on my own, the downstairs neighbors left a candle burning. A woman walking by noticed the flaming curtains and, luckily, called 911. Had it been just another five minutes, everything of mine might have been up in flames. The following day, I made sure to look into renter’s insurance. If you don’t own your property, it is incredibly important to purchase renter’s insurance.

What is involved with renter’s insurance?

More often than not, the homeowner, condo association, or landlord carries insurance for the building itself. If something happens to all your belongings or you have personal damages, though, they might not be covered. It does not matter where you live – in a condo, an apartment, a dormitory, or even renting a room in a friend’s house – you should get renter’s insurance to protect yourself.

What sort of disasters are covered?

Theft and fire damage will generally be covered by renter’s insurance, as will smoke damage, plumbing breakdowns, and more. Renter’s insurance doesn’t usually include floods and earthquakes. If you reside in a state or area that is prone to these, you will need to discuss buying another rider . Keep natural disasters that will usually happen within your areas in mind when you are policy shopping. When your home is unlivable because of damage, insurance will usually cover it.

What things will insurance pay for?

Actual cash value is one major type of insurance, while replacement cost is another. Actual cost value (ACV) pays you simply what the items lost or damaged are actually worth. When an item is damaged or lost, replacement cost insurance pays what it takes to actually replace it. As an example, if you purchased a $ 500 TV 3 years ago, an ACV policy would pay only the current value of the TV, which can be much less. In contrast, a replacement cost policy would pay you what a new TV would actually cost.

What are the costs to think about?

When buying renter’s insurance, there are some major numbers to keep in mind. The amount of money you have to pay before the insurance kicks in is recognized as the deductible. Your premium is the price of your insurance that you give to the company every month or quarter. You should make and keep updated an inventory of all items in your home, including their values. That list will give you proof and help you get full value for the items you lose or that get damaged. Lastly, keep in mind that if you have a particularly expensive or valuable item, you should inform the insurance company so they can properly cover the item.

Wherever you live, you should make it a point to protect your investments. My college furniture almost went up in flames when my neighbors ignored a candle. Protecting myself with renter’s insurance was one of the most important lessons I learned during that first semester in college.

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