Many renters don't stop to think about what will happen if there is a fire, someone breaks in and steals their new TV or stereo, or a guest slips and falls on their property. The sad truth is that it will be up to you! Even though your landlord
The building's insurance doesn't cover your personal belongings or your liability if someone gets hurt in the space you rent, whether it's an apartment or a house with a yard.
If a fire destroys or damages your home, the structure will be covered by your landlord's insurance. It won't pay for things that get broken or lost. It also won't cover the cost of a temporary place for you and your family to live.
You might think that you don't have enough personal property to make insurance worth the cost. Most likely, you're wrong! If you sit down and figure out how much everything you own costs, you might be very surprised. Think about how much you've spent on things like:
Furniture and other items
- Jewelry
- Plates, silverware, and kitchen tools
- Sporting equipment
- Books
- Small appliances like toaster ovens, microwaves, etc.
- Art work like paintings or prints
- TV, stereo, computers, and other electronics
- Clothing
Could you buy all of these things again if you had to?
Even worse, what would you do if a friend got hurt on your property and decided to sue you for medical costs and more? Isn't that a scary thought?
Are you starting to see why rental insurance might be a good idea?
Several things affect how much rental insurance costs:
- Premiums
- The amount of money you are covered for
- Whether you choose to be paid the actual cash value or the cost to replace the item (more about that in a minute)
#! Where your rental property is and how many claims have been made before, both by you and other people who live in the same area.
Let me explain how Actual Cash Value (ACV) is different from Replacement Costs. ACV is how much your property is worth at the time of a loss. For example, your TV is worth much less than if it were brand new if it is five years old. The amount you get back is the amount that is less.
But if you choose Replacement Cost, you get the amount it would cost to buy a new TV with the same features. Your premium will go up if you insure for replacement cost, so it's a good idea to get quotes for both Actual Cash Value (ACV) and Replacement Cost policies. Then you can choose the option that meets your needs and fits your budget.
Also, remember that jewellery, expensive collections, and guns are usually covered by a separate policy or "rider." Make sure to tell your insurance agent if you have any of these things. You don't want to find out after a disaster that they aren't covered or aren't covered for what they're really worth.
Check with the company that insures your car to see if you can get a better deal on your rental insurance. If they offer rental insurance, you might get a discount for having more than one policy with them.
Renter's insurance could be worth the money just to give you peace of mind.
