Do You Need Rental Insurance

Do You Need Rental Insurance



Do you​ Need Rental Insurance?
Many renters don’t stop to​ think about what happens if​ there is​ a​ fire,​ someone breaks in​ and steals their new TV or​ stereo,​ or​ a​ visitor slips and falls on​ their property .​
The sad truth is; you​ will be responsible! While your landlord has
insurance that covers the​ actual building,​ that coverage does not include your personal property or​ liability for injuries which occur in​ the​ space you​ rent ~ be it​ an​ apartment or​ a​ house and yard .​
If a​ fire should destroy or​ damage your home,​ your landlord’s insurance will cover the​ structure .​
It won’t cover damage or​ loss of​ your belongings .​
Neither will it​ provide for the​ cost of​ temporary housing for you​ and your family.
You may think you​ don’t own enough personal property to​ make the​ cost of​ insurance worthwhile .​
You’re probably wrong! If you​ sit down and add up the​ cost of​ everything you​ own,​ you​ may be in​ for a​ big surprise .​
Consider what you​ have invested in​ such things as:
• Furniture and accessories
• Electronics like TV,​ stereo,​ computers
• Small appliances like microwaves,​ toaster ovens,​ etc.
• Clothing
• Art work like paintings or​ prints
• Dishes,​ silverware and cookware
• Sporting equipment
• Books
• Jewelry
Could you​ afford to​ replace all of​ these things?
Even worse,​ what would you​ do if​ a​ friend is​ injured on​ your property and decides to​ sue you​ for medical costs and more? It’s a​ scary thought,​ isn’t it?
Are you​ beginning to​ see why rental insurance may be a​ very wise investment?
The cost of​ rental insurance is​ based on​ several factors:
• the​ dollar amount of​ your coverage
• Deductibles
• Whether you​ choose to​ be reimbursed for Actual Cash Value or​ Replacement Costs (more about that in​ a​ minute)
• Where your rental property is​ located and the​ number of​ previous claims made,​ not only by you,​ but by others living in​ the​ same area .​
Let me explain the​ difference between Actual Cash Value (ACV) and Replacement Costs .​
ACV is​ the​ value of​ your property at​ the​ time a​ loss takes place .​
For example,​ if​ your television set is​ five years old,​ it’s valued at​ much less than if​ it​ were brand new .​
The lesser amount is​ what you​ are reimbursed .​
However,​ if​ you​ opt for Replacement Cost,​ you’re paid whatever it​ costs to​ go out and buy a​ new TV with similar features .​
Insuring for replacement cost raises the​ amount of​ your premium so it’s a​ good idea to​ get quotes for both ACV and Replacement Cost policies .​
Then you​ can decide which option fits your needs and budget .​
Another thing to​ keep in​ mind is​ that jewelry,​ valuable collections,​ and guns are usually covered under a​ separate policy or​ rider .​
If you​ own these kinds of​ items,​ be sure to​ tell your insurance agent .​
You don’t want to​ find out after disaster strikes that they aren’t covered or​ that they aren’t covered for their true value .​
One way you​ can reduce the​ cost of​ your rental insurance is​ to​ check with whichever company insures your car .​
If they provide rental insurance you​ may be eligible for a​ multi-line discount.
Rental insurance may be worth the​ investment just for the​ peace of​ mind it​ offers you.




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