3 Things You Should Know About Renters Insurance

5/27/2020 (Permalink)

Renters insurance covers the personal property of renters but not the home that they rent

3 Things You Should Know About Renters Insurance

Fire can not only cause extensive damage to the home you live in but destroy the personal property you have in that home. Renters insurance can help you replace your personal property damaged or destroyed in a fire at your rental home. Most renter's policies are similar in what they cover, but there can be some differences, so it is wise to familiarize yourself with your policy before a loss occurs.

1. Policies May Cover Actual Cash Value or Replacement Cost
Most renter's policies cover personal property at replacement cost, which is the cost of replacing your property with a new item of like kind and quality. However, some policies cover property at actual cash value, which is the replacement value less depreciation. If you have an actual cash value policy, you will probably pay less in premiums but could also receive less money than it will cost you to replace or repair your property.

2. Your Renters Policy Does Not Cover Your Rental Home Itself
Renters insurance covers the personal property of renters but not the home that they rent. Your landlord should have a policy to cover any fire restoration services needed to repair damage to the building you are renting. Building owners are also usually also responsible for hiring a fire cleanup service in Apex, NC if one is needed to restore the building to livable condition.

3. Some Property May Have Specific Limits
Most of your personal property is covered for fire damage up to the limits of your policy; however, some types of property may have specific limits that you should be aware of. Categories of property that frequently have limits include electronics, musical instruments, jewelry, plants, and cash. Your policy should state any limits on specific types of property.
Renters insurance can provide financial protection for your personal property that has been lost or damaged in a fire. However, it is wise to familiarize yourself with your policy and know exactly what is covered, and for how much, before a loss occurs.