One of the things a tenant should ask potential landlord about is whether the property or fire insurance extends its coverage to the renter’s possessions. Chances are it only insures the property. More often than not, a person would have to find renters insurance on their own to make sure assets are adequately protected. Not only that, a decent policy will ensure that temporary housing and liability protection (such as in the event of visitors having accidents in the rented home) are provided when needed.
Some things to consider when looking for insurance for renters is the dollar amount of coverage. This is one of the main influences of the price of an insurance premium. The dollar amount is defined as a fixed amount applied to all of the policy-holder’s possessions as determined by the insurer. It is not defined individually, i.e. single pieces of property. As such, a more comprehensive coverage plan will usually result in a higher policy price.
Deductibles are an important factor when evaluating agencies which provide insurance for renters. The deductible amount depends on how much the policy-holder is willing to pay out of pocket before the insurance covers the rest. Everything but liability coverage is subject to deductibles.
If a break-in takes place in your rented home, the policy you paid for can compensate you for any loss of items. When you find renters insurance, however, you have to determine first whether the policy’s replacement guidelines are based on actual cash value (ACV) or replacement cost when it comes to stolen or lost items. Most policies pay ACV, which is based on the item’s value when it was lost or stolen. Given that most things depreciate in value over time, it would be in a policy-holder’s best interest to opt for replacement cost where possible, even though it costs slightly more. It’s also advisable to have a separate policy for more expensive items like jewelry so that adequate coverage is provided.
It may take some time and legwork before a person finds the right renters insurance policy for themselves, but all that peace of mind makes the effort totally worthwhile.