insurance Archive

Renters Insurance and How it Works

Renters Insurance is available for people who are renting an apartment or house. The insurance is intended to replace the renter’s property should it get damaged or stolen. This is because the owners insurance will only cover the property and house. Some managers or property owners require a renter to have insurance when living in their apartment or house.There are different types of renters insurance in this state. Depending on what the renters needs are on which one to purchase. The insurance company will go over the different policies they have and their cost. Regardless of which one you select all policies have a dollar amount they are limited to.This is the maximum amount that the renter can receive from the policy, regardless of what the actually loss amount is. To ensure that all your valuables are covered a policy with a large dollar amount is suggested. There will be a deductible that must be paid before the policy will be paid out.A deductible is the amount you pay out of pocket before the company will pay your claim. Generally if a policy for $25,000 is taken you will pay $250 deductible. Sometimes theft requires more of a deductible. So check to see which deductible fits in your budget.There are 3 type of coverage available, personal property, loss of use and personal liability. The first one, personal property is just that. It pays to replace or fix your personal property. There is a limit on the amount of monetary amount that you will receive.Loss of use is next, this pays for additional living expenses. If you have to move because of the loss of the property then this will pay you to stay elsewhere. The last one is personal liability. This protects you if someone is injured while in your home. This will also cover your legal costs.Of course there is a limit on the amount that it will pay out but in general it will take care of your needs. Renters policies pay the actual cash value rather then what you paid for the item. The insurance company will subtract normal wear and tear and depreciation for how old the property is.For an extra charge a person can purchase replacement cost coverage. This pay the full amount of what it takes to replace the property. While this can be expensive it is worth it to protect your property and yourself in an emergency.