Renters Insurance Information

Do you rent your current residence? Renting can save money in several different ways including upkeep on the property. One area you might want to rethink skimping on is renters insurance. Many people are under the mistaken impression that the landlords insurance is going to cover their belongings in case of fire, theft or natural disaster. Unfortunatly this is not the case, you could have losses in the thousands and your landlord does not have to pay you one single red cent!

You will often times find contents insurance and renters insurance used interchangeably. In all honesty they are quite similar and depending on your insurance provider may indeed be the same thing. Some companies will differentiate between the two, contents insurance being the policy you carry in addition to your homeowners and renters insurance being what you carry when you live in a home owned by another.

Always Contact an Insurance Professional, this is merely general information and your situation may differ!

Contents Insurance/ Renters Insurance:

• Coverage- One difference you may find in a contents insurance policy is the items covered. Generally speaking everything inside the residence will be covered by contents insurance regardless of who owns the property, which means your friend stereo system would be covered.
• Cost-Contents insurance is like any other insurance in that what is covered, deductibles and more go into the cost determination. You can get contents insurance for as little as $12 per month, but it may not cover you adequately.
• Limits- What you are paid and yearly limits may be placed on your policy. Much of this depends on whether you choose actual cash value or replacement costs as the basis of your policy. In the case of a total loss you have to estimate what it would cost to replace your items.

Landlord Insurance

• coverage- Landlords are required to carry insurance on any property they rent. This is often times referred to as renters insurance, but you must understand it will not cover any items you possess. Only things that are a part of the permanent structure are covered, as well as injuries sustained on the property and such.
• Cost- Cost to the homeowner will vary depending on square footage, heat source, proximity to fire department and much more. In some cases an agent may have to come out and inspect the property before cost and coverage will be assessed.
• Limits- These policies are much like a typical homeowners plan, they will cover structural damage, accidents on the property and law suit payouts. Limits are determined by the policy selected, for the property itself landlords should figure re-build costs and for the liability insurance the policy should cover personal net worth.

Bottom Line

If you rent property you need renters insurance or contents insurance. Your landlord is not required to cover your belongings in case of fire, flood, theft or any other natural disaster. Most people have accumulated their belongings over time, so it is hard to imagine that you have $20,000 worth of contents, but that is what the average person owns. Try to think about what it would cost to replace your appliances, furniture, electronics and other personal items? Renters insurance or contents insurance can give you added piece of mind!