Renter’s insurance can mean the difference between replacing lost or stolen property and paying a substantial amount of money out-of-pocket to replace it. If you are currently renting, you will want to ensure that your property is protected in the event of a natural disaster or theft. Here are some questions you will want to ask insurance agents when shopping around for renter’s insurance.
What Are My Theft Limits?
Tenants should look into theft limits provided by renter’s insurance companies. According to Military.com, most renters’ insurance policies cover $1,000 on jewellery, between $3,000 to $10,000 on computers and $2,500 to $10,000 for replacing silverware or flatware that is stolen.
Each policy is different, so make sure you find out what your theft limits are before you take out a policy. Asking about theft limits will help you to decide whether you will need to take out personal property riders in additional to a standard renters insurance policy.
What is My Cash or Replacement Value?
Renter’s insurance insures your property in one of two ways, by providing either a cash or replacement value. If you choose a policy that covers cash value, this will take the age and condition of items that have been damaged or stolen. For example, if your 10-year-old grandfather clock is damaged, a cash value estimate will pay part of the original cost of the grandfather clock.
However, a replacement policy would reimburse the full amount of a brand new grandfather clock according to current prices, rather than the price you paid 10 years ago. If you choose a cash value renter’s insurance policy, you will likely be paying lower premiums than replacement value, but you will not be receiving as much in return in the case of damage or theft.
How Much Will My Deductible Cost?
One of the questions you should ask renter’s insurance agents relate to their deductible (the out-of-pocket) costs you will be expected to pay. Remember that the lower the deductible, the more the renter’s insurance policy will cost you.
Do You Offer Discounts?
The price you are quoted is not necessarily the final price you will be expected to pay for renter’s insurance. Some insurance companies offer discounts to their car policyholders, notably USAA.com, if they also decide to take out renter’s insurance. You might also be entitled to discounts if your home has a built-in security system smoke detectors and deadbolt locks. Shop around and see what is out there.
Renter’s insurance is a necessity for tenants who wish to protect their possessions from damage or theft. Be armed with questions as you search for an insurance company that will best suit your needs and do not be afraid to ask about theft limits, deductibles or discounts.
Get Renters Insurance After a PCS Move