Renter's insurance is often overlooked by renters because they consider that it is unlikely to pay off in the long run. However, an accident that damages a resident's possessions is just as likely in a home for rent as it is for a home that is bought outright by the resident.
If you're renting a property, you should be aware of the following four things. Being aware of these renter's insurance factors will help you to get the coverage you need on the belongings you keep in your rental home:
A landlord's property insurance isn't going to cover your belongings.
A lot of renters make the assumption that their belongings will be covered by their landlord's property insurance. While home insurance will typically cover a resident's belongings if the resident owns the home, this is not usually true if the resident is renting.
If you rent a home and you don't have renter's insurance, you will not be compensated if damage to the property destroys your belongings.
Having your possessions appraised is the best way to find the right renter's insurance policy.
It's difficult to make an accurate estimate of what your belongings are worth unless you have them appraised. If you guess what the value of your belongings is, you may end up taking out a renter's insurance policy that doesn't have high enough coverage limits to compensate you for everything you own. Documentation of your appraisal can be presented to your insurance company to back up a claim so that you are able to be reimbursed the proper amount.
You'll want to take inventory every time you renew your policy.
As time goes on, you'll accumulate new belongings in your home. You need to have documentation of the purchase of these new belongings to get compensation for their destruction if you have to file a claim. This means that it's important to repeatedly take inventory of the possessions you're insuring every time you renew your policy.
Paying your premium in one lump sum can benefit you in the long run.
Many insurance providers will offer you a lower overall premium if you pay upfront than if you pay monthly. Paying up front can also make it easier for you to budget for your renter's insurance by taking care of the expense all at once. This way, renter's insurance costs don't continue to eat into your income over the entire life of your policy.