Renters Insurance

Understanding Renters Insurance

There are various types of insurance such as auto, health and life. Insurance helps protect you financially by ensuring that you have the ability to replace items you have lost. When you are a renter, renters insurance is essential to ensure that you have the money to replace items lost in a fire or flood.

With insurance, you purchase a policy and make monthly, quarterly or annual installments to cover the premiums. The amount of the cost of the monthly premiums directly correspond with the amount of insurance you purchase. If you experience a loss, you will be responsible for paying a deductible prior to receiving the benefit of having insurance.

Renters can usually choose between two different types of insurance. A cash value policy means that the insurance company will reimburse you after they have depreciated your assets. With a reimbursement policy, your insurance company will pay you the cost of replacing your items today. Typically, purchasing a reimbursement policy will be more than a cash value policy, but both options are extremely affordable when compared to replacing everything yourself.

The major benefit to having insurance is the fact that you do not have to replace all of the items you have lost out of your own pocket. The amount of insurance you purchased is used to cover the costs associated with replacing your items. Whether you have lost a home entertainment system or a camera, as long as you have documentation, your insurance company will cover the costs associated with replacing the items for you.

It is important that you maintain insurance because the insurance your landlord has will not cover your property. Their insurance only protects the structure of the building, which makes you responsible for replacing your own items. When you are ready to get renters insurance, a simple phone call to your local insurance agency will help you cover your property.