Severe weather? Time to buy renter’s insurance
With winter storms and severe wind conditions hitting a large area of the Northeast, the folks at ResidentShield wish to remind you of the peace of mind that good insurance coverage offers to all policy holders.
Renters insurance is a big issue that comes up when the weather turns bad. Seen as an unnecessary expense when the sun is shining, this policy is what gets you out of trouble once damage or theft hit your home. While it’s true that policies may vary by state, the difference is quite small. Also, pretty much nobody will ask for the whole payment upfront.
The common myth that your building owner’s insurance will cover your belongings is just that: a myth. A homeowner’s insurance policy covers the structure of the building. It does not cover the possessions of the tenant. All renters living in apartments, condos or houses should consider renter’s insurance.
In addition, renters looking to purchase an insurance policy for their personal property might need to acquire a rider for specialty items such as jewelry and furs, art and antiques, firearms, musical instruments and collectibles. You may receive a discount if the property you live in has monitored fire or burglar alarms, fire extinguishers, a sprinkler system and dead bolts on exterior doors. Another way to receive a discounted rate is to purchase auto insurance from the same provider.
Keep in mind that renters insurance has some limitations too: it doesn’t cover damage caused by floods, earthquakes and sewer and water backup. Flood insurance is available to both homeowners and renters. Yet, in the unfortunate event you are forced to move out of your home while repairs are being made, or until you can find another place to rent, renters insurance will pay for additional living expenses such as meals and hotels.
Two more things you should consider: replacement cost versus actual cash value (ACV) and liability coverage. The latter is often standard with renters insurance, and it proves handy in case of an accident—a friend comes over, slips and falls. This liability coverage will provide protection against legal claims that you may be obligated to pay. Furthermore, it also covers unintentional damage to the landlord’s property caused by you. The replacement cost versus ACV is a bit trickier—you might want to upgrade your coverage from ACV to replacement cost as the ACV will cover you for the damaged item based on its cost at that time. Specifically, if you bought a TV for $1,500 a few years ago, now it may only worth $500. So with ACV coverage, you will only receive that amount. But if you have replacement cost coverage, your payment will be sufficient to purchase a new item, similar to the one you lost.
Do you have any questions about renters insurance? Chat live with our ResidentShield support team for free or call them at 1-800-566-1186. Looking to rent in the Northeast? Check out RENTCafé for Philadelphia apartments and much more.