One popular question asked by renters who want insurance coverage is how much does it cost. Well fortunately this type of coverage is very affordable - the typical cost of renters insurance is about $10 to $20 each month. The actual cost is generally connected to the deductible you pick.
Most insurers provide cost deductions on their policies if some form of protective device is in place such as monitored burglar and fire alarms, every exterior entryways have dead bolt locks on them, fire extinguishers, local burglar alarms that are ultrasonic and sprinkler systems just to name a few. You can ask your landlord to find out what type of warning or security system are in use in the building, as you need to know this information to qualify for the deductions on the policy you are buying.
Policies with higher deductibles are basically cheaper, but it is important to make sure that you can afford the deductibles you choose, as you may require additional coverage if you have expensive or precious valuables. Renters insurance policies are basically more expensive if they cover replacement costs, as this reimburses renters for the actual price to replace stolen or damage personal belongings.
While actual cash value renters insurance coverage may be less costly, it also gives significantly less cash to replace your personal belongings.
While actual cash value renters insurance coverage may be less costly, it also gives significantly less cash to replace your personal belongings.
In many cases, renters are only reimbursed the amount that their personal possessions are worth at the time it gets stolen or damaged. For example, a tenant who procured an expensive appliance that was damaged by fire would be only reimbursed, despite its original cost, for the used value of the appliance at the time of the fire.
Compare The Cost Renters Insurance Free And Get The Cheapest Rate!
Compared to the annual cost of homeowners insurance, renters insurance annual cost is not expensive. Although some renters neglect buying a policy, either thinking that their personal possessions don't cost that much or are of no value, it is always important to have one. You have to realize it insures against more than just personal property loss. Standard renters insurance also covers the costs of hotel accommodations in cases the tenants rented home is seriously damaged or destroyed by fire or other perils and even from foreclosure of the rental property. The costs of this insurance may depend on several factors such as your deductibles, where you live, and whether you require more coverage than the standard insurance policy offers. But compared to other types of insurance it is very cheap.
If you rent, you really need to consider getting a policy. It is essential to have for every tenant in order to protect their property against damages caused by fire, theft, riots, lightning, hail or windstorm and explosions to name a few. And it also protects you from personal liability in case an injury or harm happened to someone inside your rented unit. Some tenants don't realize that their personal belongings are not covered by their landlords insurance and typically the most common misconception among tenants is they assume that their landlords insurance will also cover their personal possessions in case something were to happen. This is typically what many tenants think and it's not true, as the landlord or property owners insurance only covers damages or losses to the building structure and it does not include the tenants personal property. Having insurance can put your mind at ease as a tenant knowing your personal possessions as well as any possible personal liability are covered. And considering it's so cheap there is really no reason not to get insured.
One thing to keep in mind is that although renters insurance is comprehensive in providing coverage for your personal property, just like homeowners insurance policies, this insurance has a few potential gaps that every tenant need be aware of. Homeowners and renters insurance policies basically will not cover property damage incurred by earthquakes or floods unless specifically included in the policy. It is essential to be vigilant about coverage limitations when selecting your plan. Talk to your insurance agent about any additional coverage that may be needed to cover any limitations. And to keep the cost of your renters insurance as low as possible, increase the deductibles as much as you can afford to while still feeling comfortable with the coverage.