Do you like your belongings? Probably so. Most people do. If you’re fond of your MacBook, comfy king size bed, or that 60’ HDTV – then you need renters’ insurance. Period. While some consider the insurance coverage optional, you shouldn’t.

 

If you rent your home or apartment, then renters insurance is imperative. Without the coverage, all your nice things and hard-earned cash could be gone in an instant. One fire or a burglar could lead to your financial ruin if you’re not covered.

 

Renters Insurance Facts You Should Know

 

With that being said, there are a few renters’ insurance facts you should know before buying coverage. By understanding the policies, you’ll be able to find the ideal one for your needs. So, let’s dive in and take a look:

 

• Coverage Away from Home

 

Renters insurance covers your stuff while it’s in your rented home. Surprisingly, renters’ insurance can cover certain items when you’re away from home. For example, if your computer is stolen from your hotel room on vacation, many policies will cover you and reimburse you for the device.

 

Why? Because many renters’ insurance policies cover personal property while you’re away from home if they are stolen. Renters coverage usually offers great theft coverage.

 

• Always Document Everything

 

A sure way to make a renter’s insurance policy work for you is to document everything. Take photos of your things. Keep records of receipts. You should have an inventory of everything that you own before damage occurs.

 

By keeping an inventory, you’ll have proof, and the insurance company will then cover the damages or theft. Take note here, even with or without proof that you owned an item; some insurance companies will let you re-purchase the item and reimburse you afterward. The insurance company will pay 100% of the receipt, thus, helping you get your items again.

 

Luckily, many renters’ insurance providers now offer apps to make documenting everything that much easier.

 

• Amazing Liability

 

If there’s one thing you should know about renters’ insurance, is that it’s cheap. Most policies don’t even cost $20 a month. These low-cost coverage options offer incredible liability coverage for individuals.

 

For example, if a guest gets injured while on your rented property, the renter’s insurance policy will help protect you from liability. The coverage will often pay for the injured guest’s medical bills.

 

• Temporary Housing Coverage

 

If you cannot live in your rented home any longer due to a fire, water damage, or a natural disaster, then your renters’ coverage will cover temporary housing. The policies can pay for hotel rooms and increased food cost because you no longer have access to a kitchen.

 

• Replacement Cost Vs. Actual Cash Value

 

Before buying a renter’s insurance policy, you need to know the difference between actual cash value and replacement cost.

 

Replacement cost means your insurance company will reimburse you whatever it costs to replace damaged items at the time of damage. If your iPhone 7 costs $700 to replace, then you will be reimbursed $700 with replacement cost renters’ coverage.

 

Actual cash value means your insurance company will only pay what the device was worth at the time of damage. A year-old iPhone 7 goes for around $450 on eBay. So, your insurance company will only reimburse you $450 if your policy is an actual cash value one.

 

• Bundling is Key

 

Renters insurance tends to be a fairly cheap coverage. You can save even more on a policy by bundling it with your car insurance or another coverage you hold. Insurance companies offer huge discounts when bundling renters’ coverage.

 

A great option is calling your current insurance agent and seeing how much renters’ coverage costs when bundled with your current policies. This should save you a good amount of money on a policy.

 

Everything You Need to Know About Renters Insurance

 

Renters insurance is a no-brainer for individuals and families renting homes or apartments. The coverage offers great value at a low cost. Use the renters’ insurance facts above to ensure you find the perfect policy for your needs at an ideal price point. And if you want to know more, please contact our team at ProtectiveAgency.com or call (877) 739-9367. Our licensed insurance agents will be happy to answer any questions you have.