|
|
|
|
|
|
|
About
Renters Insurance |
|
|
A basic
renters insurance policy will cover you in case your belongings are
lost due to burglary, fire, burst water pipes and the like. It will
also provide liability coverage should someone be injured on your property.
Another thing renters insurance will cover is damage you cause to the
landlord's property (say, if one of your party guests breaks a window).
Here are
some questions you will need to consider before speaking to an agent
about getting insurance.
|
|
|
Replacement
Cost vs. Actual Value |
|
|
|
A basic
policy usually provides for the actual cash value of your belongings.
This means that a 3-year-old computer would be covered for its initial
cost minus depreciation. A computer may well have almost fully depreciated
after 3 years, so you would receive little or no cash for it. If you
have expensive electronics or other pricey items which are subject to
depreciation, you might want to consider replacement cost coverage instead.
In this case, you would be reimbursed for the complete current cost
of buying a new computer or stereo. Of course, replacement cost coverage
is more expensive, but may be worth it in many cases.
|
|
|
Deductibles |
|
|
|
Like any
insurance policy, renters insurance will have deductibles. This is the
amount of loss you will have to cover out of pocket before receiving
any money from the insurance company. For example, if your deductible
is $350 and your computer (on which you've got replacement cost coverage)
would cost $2000 to replace, you would receive $1650 if it were stolen.
The higher the deductible, the lower the premium, but you must balance
your ability to cover the deductible with the monthly premium savings.
|
|
|
Endorsements |
|
|
|
Like homeowners
insurance, renters insurance usually won't cover you for "acts
of God" such as floods and earthquakes. You can get endorsements
for these, however, and you should seriously consider them. Endorsements
can also be used to extend the amount of coverage on the policy or the
incidents which are covered.
|
|
|
Loss
of Use Coverage |
|
|
|
If
something happens that means you can't live in your apartment for a
period of time, you may have to live in a hotel and eat meals out. Your
renters insurance can and should cover such "loss of use"
just as your auto insurance covers a rental car while yours is in the
shop.
|
|
|
Liability |
|
|
|
Your basic
renters insurance will include liability coverage should someone be
injured in your apartment. As with car insurance, there is a per-incident
limit on this coverage, and you should make sure this is high enough.
Increasing liability coverage will often not increase premiums much
at all.
|
|
|
Floaters
for Special Items |
|
|
|
If you
have such items as valuable jewelry, antiques, furs, or other big-ticket
items, they often will not be completely covered under a basic policy.
To fully cover these items from loss, you will want what is called a
floater. These are essentially separate policies covering only these
items and can be very inexpensive relative to the replacement cost of
the items. This brings us to an important thing to consider when purchasing
insurance: the household inventory.
|
|
|
Inventory |
|
|
|
Before
heading out to shop for renters insurance, take a look around. Inventory
the possessions you would most want or need replaced were they to be
lost as well as any big-ticket items for which you may need special
coverage. This could include your stereo and/or computer equipment,
antiques, jewelry, furs, appliances, or photography equipment. Gather
details of make, model, serial number, age and costs (both purchase
and current replacement) and put them in a spreadsheet or just write
them down in one place. It may also help to have photos of these items
for identification purposes.
|
|
|
Appraisals |
|
|
|
If you do have such
things as antiques, jewelry, furs, or other items not easily replaced
but highly valuable, it may even be a good idea to have an insurance
appraisal done so you can be sure to have the coverage you need as well
as the paperwork you will need to collect should they be lost. The appraisal
can be done by an expert in the field (jewelers, furriers, and the like)
and will usually include a photo of the item and the expert's description
and appraisal of value. These appraisals, as well as a complete inventory
of the items in your property, should be kept somewhere outside your
apartment or at least in a fire proof safe. Often, you will be able
to place copies of such paperwork with your insurance agent.
|
|
Source:
About.com "Thinks
to Consider When Purchasing Insurance"
Sandra Clockedile
|
|
|
|
|
|
|
|
Copyright
© 2003 Total Insurance Network, All Rights Reserved.
|