Renter’s Insurance: Three things you need to know

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Renter’s Insurance: Three things you need to know

Renter’s insurance is often ignored…until tragedy strikes. If you’re researching renter’s insurance right now, you or a loved one may have fallen victim to a fire or theft. In the case of a tragic event such as these, your belongings will need to be replaced. That’s where renter’s insurance comes into play.

Evaluate your belongings:

When it comes to buying renter’s insurance, make sure you take the time to assess the value of your personal possessions. It is important to make a thorough inventory list, as guessing can cost you a substantial amount of money. It is even said that the average person owns $20K in personal belongings …would you have guessed that your possessions would be worth $20K or more?

Tip: Keep your inventory list in a safe spot, like a fireproof safe or safety deposit box away from the home.

Know the limits:

Renter’s insurance policies, like other insurance policies, place a cap on certain belongings of higher value. Jewelry, electronics, and firearms are examples of items that will potentially require separate coverage based on their value.

Know what’s available:

There are two types of renter’s insurance plans you can purchase. These are Actual Cash Value (ACV) and Replacement Value (RV).

When something that you have is damaged, ACV will take into account the depreciation and usage of the items. Therefore, you won’t get back the value of what it would cost you to go out and replace the item today. However, with RV insurance you receive the amount that it would cost you to go out and purchase that same new item today.

Since these plans vary in their offerings, they also vary in their premium costs. Since the insurance company pays out more for RV claims, the premium for RV insurance is higher.

Want to learn more about renter’s insurance, and to make sure your belongings are covered? Head over to our Personal Lines page to chat with an agent, or contact us today to set up an appointment with a personal lines agent.

Contributing source: hanoverfire.com