Understanding the Benefits of Renter’s Insurance

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When you rent a house or an apartment, your personal property is not covered by your landlord in the event of damage or theft. Renter’s insurance is essential to make sure you have adequate coverage for your personal property. Unfortunately, it is often overlooked.

Here’s what you need to know about renter’s insurance:

What is renter’s insurance? Coverage for your personal property.

Your clothing, computer and furniture are just a few examples of personal property that renter’s insurance covers in the event of theft, damage or loss from natural disasters such as fire or severe storms. Some natural disasters — earthquakes, floods or hurricanes — may require riders or add-on coverage. The cost and availability of natural disaster coverage changes depending on your specific location.

For extremely valuable items, such as jewelry or rare collectibles, extended coverage may need to be added. Renter’s insurance typically includes liability coverage to protect you if someone is injured in your rented home. Policies cover legal, medical and other bills related to the injury.

If your home is deemed unlivable because of a disaster, renter’s insurance usually has a provision for loss of use that will help pay for temporary living costs, such as hotel and food. Typically, this specific coverage limits the amount of time and costs covered.

How much is renter’s insurance? Not as expensive as you might think.

While many people skip renter’s insurance because they don’t want to pay for it, the coverage isn’t as expensive as you might think. On average, $30,000 worth of renter’s insurance costs between $12 to $30 a month. Prices vary based on the type of coverage, size of your deductible and the state in which you live.

Riders and additional options will add to the cost, but also increase the protection for your personal property. It is possible to lower the cost of renter’s insurance if you have a home security system and fire and smoke detectors.

How do I find renter’s insurance quotes? Check with your insurance agent or look online.

You should start your research by talking with the provider of your auto insurance policy. Some insurance companies provide multi-policy discounts. You can compare prices online. Many insurance companies provide access to free online tools so you can easily determine coverage, deductibles and costs. It is best to compare two or more quotes for renter’s insurance to determine which one best meets your financial and coverage needs.

Allstate has been the leader in providing the best renter’s insurance. One of the reasons for this is their free “What’s Your Stuff Worth?” online tool. This tool helps you determine the value of your personal property.

Regardless of which company you choose for renter’s insurance, you’ll need to read the fine print of the policy to make sure you understand your coverage.

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Article printed from InvestorPlace Media, https://investorplace.com/2015/01/understanding-benefits-renters-insurance/.

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