Living in rental, you might think that your landlord’s insurance policy will cover you and your belongings in the event of a loss. Unfortunately, that line of thinking is wrong. A Landlords’ Insurance policy works to cover the interest of the landlord, not the renter. Your personal belongings will not be covered, only the contents of the landlord.
As a renter it is your responsibility to ensure that you are the one protected.
Surprisingly, 67% of all renters go without Renters Insurance. We find that there are usually two reasons behind this: One is cost; the other is a lack of information.
Renters insurance really isn’t that expensive – relative to other types of policies, you could even say that it is cheap. The average cost for a year of coverage is $184. Not such a big, scary number is it?
Getting the word out about Renters Insurance however is a bit more difficult. When shopping for insurance you know that you need auto, you know you need health, but if you don’t own a home, you may not know that your belongings are still in need of protection.
A standard renters insurance policy covers your personal belongings, liability, and additional living expenses (ALE).
There are two main types of policies as it regards the replacement of your personal belongings:
- Replacement Cost coverage will pay the real cost to replace your belongings, regardless of the depreciated value. (It will cost roughly 10% more, but is a better value long-term.)
- Actual Cash Value pays only the depreciated value of your replacement items.
Want more information on a Renters Insurance policy?
Contact Texan Insurance. We are here to help walk you through the process of purchasing renters insurance. Let one of our agents explain how our coverage can protect you from lawsuits, total loss, and the expenses incurred should your home become uninhabitable.
Source – Renters insurance: 10 cities with market potential
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