Renter’s insurance protects your property against damage or loss, and insures you in case someone is injured while on your property. It’s offered by most companies that sell homeowner’s insurance. If you rent or lease your home this is for you!

Why Should I Buy It?

Your landlord’s insurance doesn’t cover your personal property — your clothes, furniture, stereo, computer, bicycle, jewelry, or anything else. Renter’s insurance does. Renter’s insurance also may pay for accidents that occur on your property or damage to others’ property. A renter’s insurance policy insurance can be an important — and relatively inexpensive — protection for you and your family.

What’s Covered?

You can purchase different levels of coverage, but there may be limits on the values of specific items covered. For example, some policies limit the amount they will pay for computers, jewelry, and other specific items. You may purchase additional coverage (”floaters”) for items not covered in your basic policy. You also may want to purchase separate coverage for losses due to earthquake, flood, or other natural disasters.

How Much Insurance Do I Need?

Estimate the value of your personal possessions. This is the amount of insurance you need to replace the contents of your home if everything is destroyed.

Decide whether you need supplementary coverage, such as for damages from flood or earthquake. The more coverage you buy, the less you will have to pay out of your own pocket to replace property that is destroyed or stolen.

What Are The Deductible’s?

A deductible is the amount you will pay out of your own pocket before your insurance pays on a claim. This amount may be a percentage of the value of the actual loss, a percentage of the value of the insured property, or a specific dollar amount. For example, if your policy has a $200 deductible and your claim is $1,000, you will pay the first $200 and the insurance company will pay the remaining $800

What’s The Difference Between Actual Cash Value And Replacement Cost?

You can insure your property in either of two ways — the actual cash value, or the replacement cost.

Actual Cash Value

This coverage considers the age and condition of the item at the time of the damage or loss, and pays only what it is worth to replace it with an item of similar condition — used.

Replacement Value

This pays you the cost to replace the covered item with a comparable new item. Replacement value policies usually cost more, and may have restrictions.

Does A Parent’s Policy Cover Students?

If you are under 26, attending college, and living in a dorm, your parents’ homeowner’s or renter’s policy may give you limited coverage. You will not be covered on their policy if you live in an apartment.

Can Roommates Or Unmarried Couples Purchase Renter’s Insurance Together?

Yes, but find out whether your policy needs to be updated if you get a new roommate, or if all your roommates need to be named under the policy. Some policies automatically extend coverage to any resident of a policyholder’s household who fits the definition of a “domestic partner.” Otherwise, consider carrying separate coverage for each of the adult tenants.

Matt McWilliams is one of the co-founders of HometownQuotes.Com, an online insurance quotes web site. He is originally from Pinebluff, NC and attended Middle Tennessee State University. He is considered an expert in the field of online insurance shopping and finding new ways to help consumers save money on their insurance. For more information visit http://www.hometownquotes.com

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