If you have gone through the harrowing experience of coming home to find your apartment broken into and plundered, with most of your stuff gone, renter's insurance is something which could have saved you from the ensuing financial catastrophe. Very few people are aware of it and the range of protection it offers, at a very reasonable price.
Insurance companies do business, by promising monetary compensation against various kinds of risks, that an individual or business faces. You name a risk and there is some kind of insurance product which can cover you for it. It is the most brilliant business idea ever invented.
What Exactly is Renter's Insurance?
Most people who live in rented apartments, avoid opting for an insurance policy, to cover for property damages, under the naive belief that the landlord's policy covers for it. There is a grain of truth in that belief, considering that the landlord's insurance does cover for damages to the building structure of your property.
However, it doesn't cover for damages to your personal property, theft, or damages caused by any other reason. You are responsible for your property, your landlord isn't. Recognizing this, some companies brought out renter's insurance. It provides compensation, in case of any damages inflicted to your personal property.
What Does it Cover?
The policy offers compensation for theft or damage to your personal possessions, along with liability coverage in most cases. There is a range of damages covered by such a policy, which includes damages caused by natural calamities, fire, theft, heating, plumbing, sprinkler system problems, falling objects, explosions, electrical problems, and rioting.
Some policies also offer compensation, in case of any individual suffering injuries in the rented property.
How to Choose One?
First of all, you need to check out for the coverage features of the policy offered. Does the policy offer liability insurance, in case of personal injury to any individual, that is inflicted on the rented property? Most low-cost policies won't have this cover. If you opt for one that does have it, the premium cost will be higher.
There are two types. One compensates the actual cash value of your possessions, that are damaged or stolen (according to their current depreciated value), while the other one offers replacement cost of the possessions (according to the original price). The latter charges you with a higher premium. Choose whichever suits your budget.
Other than the two main points, you need to see the minimum deductible on the insurance policy. The deductible is the amount you need to pay for, after which the company compensates. The premium cost will vary, according to rented apartment's location and the degree of theft risk in the area.
Make a total valuation of all your possessions and look for a policy, that offers adequate compensation for the total value, at a reasonable premium cost.
If you live in a neighborhood, which has a notorious track record of frequent theft incidents, it is absolutely essential that you opt for a renter's insurance. The replacement cost cover, provided by it, can be a lifesaver, when your whole apartment gets robbed of valuable items.
When you have a large number of valuables stored in your rented apartment, going for this insurance is no longer a choice, but a necessity. Check out the quotes offered by the companies and choose one that suits your exact requirements.