How Much Is Renters Insurance

Renters insurance is a necessity for anyone who leases a home or apartment. There are various aspects to a renters insurance policy that the lessee needs to keep in mind when choosing a policy.

Household Goods

The owner of the unit will have some insurance coverage in case of a major disaster, but it will not cover the lessee’s personal belongings. When getting a renters insurance quote consider how much it would cost to replace all the items in the house. This would include clothing, furniture, appliances and electronics. A common recommendation is $10,000 per person, per bedroom for the average home. So two people in a two bedroom apartment should start coverage at $20,000.

Replacement Value Coverage

When choosing coverage for household contents, ask for replacement value coverage. This is the best renters insurance option to protect household items. Most policies take all the covered items then depreciate them based on how old they are. They only pay the policy holder the depreciated value in the event of a loss. If the renter lost a whole house full of goods, he or she could end up receiving significantly less money than needed to replace their items. Replacement value coverage will alleviate this problem. The company will pay to replace the items with new items regardless of the current price. Say a couch receives damage that is 6 years old, the company will pay to purchase one like it at today’s prices.

Riders

For those who have expensive jewelry, furs and other high end items, riders may be necessary to ensure adequate coverage. Most companies have a limit on how much they will pay out for these types of items. Take time to investigate the limitations of the policy. The company will require the item to be appraised prior to issuing a rider. They will not be able to price a rider until they know the exact value of the item or items.

Liability

The person renting the dwelling is legally responsible for anyone who gets injured on the property. For example, if a visitor tripped on a scatter rug and broke their leg the legal lessee could be sued for damages. Look carefully at the coverage amounts. Everyone wants to get cheap renters insurance, but there are areas like liability that require careful consideration. Most experts recommend not less than $100,000 coverage per incident for bodily damage and $50,000 for property damage. Damages over the covered amount will be the responsibility of the lessee.

Choosing a policy requires careful consideration and attention to detail. Balancing the budget with the coverage is not an easy tasks. These are a few of the key aspects to building a viable insurance policy to protect those who rent. It is recommended that the policy be reviewed annually for revisions.

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