Common Renters Insurance Questions – Answered

renters insurance faq

You hope to own a gorgeous home in the future but are currently living in a rental apartment. So have you protected yourself from financial loss by purchasing renters insurance? Having such insurance protection for the valuable personal possessions you’re keeping in your home will help you stay covered in case of a disastrous loss.

Read on for answers to common renters’ insurance questions.

Are my possessions worth the policy’s cost?

Do you own items like desktops, laptops, furniture, or clothing? If you lost any such personal property, will you be able to comfortably replace it without insurance? On average, such belongings, including appliances, may be worth several hundreds or thousands of dollars, constituting a much bigger financial risk. However, with renters insurance, you can adequately cover your possessions for a fraction of their value and protect yourself from financial loss.

Why purchase renters insurance when my landlord has already insured the rental property?

Your landlord’s policy only covers their building and doesn’t include your possessions. In a hypothetical scenario where the apartment you’re living in catches fire, the owner is compensated for any resultant loss or repair cost. On the other hand, if you lost any personal items in the blaze, your landlord’s insurance wouldn’t compensate you. This is where having renters insurance could be your safety net for recovering everything you lost.

What is the cost of renters insurance?

On average, a typical renter pays $20 per month for the renters’ insurance coverage. Some policies may even work out to roughly $200 per year–a deal which makes sense when you’re covering items worth thousands or tens of thousands of dollars.

Besides my possessions, what else does renters insurance cover?

Renters insurance can take care of unforeseeable disastrous events that expose you to financial loss. It usually includes liability protection, which comes to the rescue when factors beyond your control damage your rented apartment.

For example, you may be liable for a slip and fall accident that results in bodily injury to a third party in your house. Similarly, if you, your guests, family members, or pets caused damage to the property, the owner could sue you for compensation. A renter’s insurance policy would shield you from financial liability in these scenarios.

Will I be compensated for my expensive collectibles?

When you’re buying renters insurance, be sure to read the fine print and understand what exactly you’re getting from your policy. You’ll usually need more than a standard plan to cover certain expensive items, such as high-end collectibles.

Do I get compensated for the full value of my lost/damaged belongings?

Actual cash-value coverage is one of the main renters insurance options available to you as a tenant. Under the plan, you’d be compensated for your covered property’s current valuation. Alternatively, you can also opt for replacement cost coverage. This plan would give you sufficient funds to replace your lost belonging with another of the same kind. It will enable you to fix or replace your covered item with a brand new one, regardless of its age or condition at the time of damage or loss.

Are you a tenant looking for adequate insurance protection for your personal property and against potential liability? At Ron Young Insurance, we answer your most relevant renters insurance questions and help you select an appropriate policy. Contact us right away for expert assistance.

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