What's Really Happening With Renters' Insurance

Do you rent your living space? If so, you may not have renters' insurance. Some people who rent make false assumptions about this type of insurance, which can result in them not getting it. There are a few reasons for you to consider getting renters' insurance. Even though you may not ever own the space you are renting, the items in it are your property. Imagine them getting stolen or damaged as a result of a tragedy such as a fire. Think of getting insurance as you taking care of yourself and your belongings in a similar manner as homeowners protect their investments.

Liability

You likely do not think that someone could get injured in your rental space. This is an event that could happen even if you aim to keep your place safe. For example, you could have a visitor who trips over a cord in your rental space and hurts their ankle. They may not want to sue you, but they might expect you to pay their medical bills. Having insurance could protect you against this type of liability.

Perhaps you have a dog, so you may appreciate the fact that your landlord allows animals. However, if your dog bites someone, chances are your landlord will vehemently deny liability. This means that you could be held liable for the dog biting incident,so insurance could be beneficial, especially if a lawsuit results from the incident. 

Affordability

You can likely find policies starting in the range of $12-$15. As a renter, you may have neighbors who are not as careful as you are. Their carelessness could cost you significantly more if they caused a problem. For example, a neighbor who smokes could cause a fire that results in property damages for you. Replacing expensive items such as televisions, computers, and furniture can easily cost you thousands of dollars when you consider the value of the items.

When choosing a policy, you will have the option to select one that is actual cash value or replacement value coverage. Actual cash value is calculated by using a depreciation method, and replacement value includes policies that take into consideration what it will take to replace the item. Actual cash value is generally cheaper than replacement value coverage due to the amount paid for actual value using depreciation as a factor in the amount awarded in claims. 

An insurance agent or broker who sells homeowners' insurance is a good resource to use for more advice on renters' insurance policies. They can assist with things such as choosing a policy and finding out the valuation of your property. If you ever move into your own home, these professionals can help you transition into a new policy. For more information, contact local professionals like ESI Insurance Agency.