Renters are more at risk than homeowners. Renters insurance can be a valuable commodity especially when you take into account what you own. A computer, television, entertainment system may be the common belongings as well as clothing. And what if you are photographer with valuable equipment or a musician with a variety of instruments. You may even have antiques and jewelry that cannot be replaced but don’t even know it. The Bureau of Justice Statistics reports that renters are 50 percent more likely to experience theft than those who own their homes. A recent study point outs many people are willing to pay a couple hundred dollars a month on clothes, but aren’t willing to shell out anything to protect themselves from the risk of theft, fire, and other catastrophes. To bad since renters insurance is one of the smartest investments renters can make.
When purchasing a renters policy, conduct a complete inventory of all your personal belongings, taking photos or a video of things like furniture, jewelry and expensive electronics items. Calculate the replacement costs for these items. Be sure your policy provides replacement cost coverage instead of actual cash value coverage.
Like they do for homeowners, most insurance companies offer discounts to a rental policyholder to lower the cost of premiums. They may offer discounts for smoke detectors, dead bolts, etc.
Make sure that the policy has liability coverage. The best renters insurance policies will also include liability coverage for medical and legal costs if someone gets hurt in your residence.
The best renters insurance policies will cover emergency living expenses. This means that if you have to vacate the property due to damage, the insurance company will pay for you to live somewhere else.
If you share an apartment with a friend or multiple roommates not related, insurance coverage can be more complicated. Most insurance companies recommend that each tenant have a separate policy but you need to ask that question when looking to make an insurance purchase.