Most usually think about insuring their car, but the cost of renters insurance makes it an attractive and reasonable option too. The actual costs depend on the company you choose. Here are a few things you’ll want to account for.
The advantages of using this type of insurance are many. Obviously it offers protection for your valuable items. Second, it can help with other expenses like liability protection. It can also help cut costs if you face a lawsuit in case of accidental injury in the place.
Remember that the landlord pays for the cost of the house only. If the roof is damaged by a storm, it will be at the landlord’s expense. But if your own property (i.e. DVD player or computer) is destroyed, it’s at your expense.
Insurance will also help if you need to relocate in case the house is badly damaged. For these reasons, the cost of renters insurance is small compared to the benefits.
Coverage and Deductibles
This is the biggest factor to consider. Bear in mind that the value on all properties you insure is fixed. It isn’t based on their individual worth per se. it is valued as a whole. The more items you want covered, the costlier it will be. Go over everything and pick the ones you want to include.
Deductibles are also factors. Apart from the coverage extent, think also of how much you can pay on your own. This will help you manage and lower the cost of renters insurance.
Money or Replacement
The insurance can pay you in two ways: ACV or replacement costs. The ACV (Actual Cash Value) means they’ll pay you whatever the item was worth when it got damaged.
The replacement cost will pay you cash equivalent to how much it will cost to buy one today. If your DVD is broken, the company will give you the needed cash to purchase something similar to it. Most prefer the replacement option, but it is up to you.
Remember that this is not applicable for all properties. Jewelry is not covered. Neither are guns or other similar valuables.
Location is Also Important
Another factor that affects the cost of renters insurance is the location. This is understandable. If the neighborhood is subject to frequent burglaries, the company is likely to pay more frequently. If you live in such a place, expect to pay more for the insurance.
Before applying for it, you should compare some prices. A few phone calls or browsing the Web is all you need to do. This will allow you to compare the prices and decide which is best suited for you. Even the most expensive are still cheaper than most home insurance policies though.
While the cheaper ones are attractive, the worth of your properties should be the main consideration. Assess your belongings and get an idea which ones you can pay and which should be insured.
The costs of renters insurance will ultimately depend on your properties. With the proper appraisal and some research, you’ll get the right company for you.