Tips & Advice
What's the best way to compare renters insurance coverage?
Each renters insurance policy comes with a limit, and this limit is the maximum amount of reimbursement provided by the policy.
Take a look at each policy's limit, and choose a policy whose limit provides enough coverage to fully reimburse the cost of any valuables.
Next, consider whether reimbursement is based on actual cash value or replacement cost. Reimbursement based on actual cash value, accounts for depreciation. For example, coverage on a stolen five-year-old TV would offer reimbursement for the fair market value of that TV, which would likely be significantly less than the cost of a new one. With renters insurance policies offering reimbursement based on replacement cost, the owner of a stolen five-year-old TV would be reimbursed for the cost of a brand-new model.
How much personal property coverage should renters insurance provide?
Renters insurance should provide enough coverage to fully reimburse the renter if all possessions are damaged or destroyed. A renter should take inventory of valuables and assign a replacement cost to each item. The sum of these replacement costs will indicate how much personal property coverage is needed.
Does having renters insurance allow for discounts on other types of insurance?
Many insurance companies allow policyholders to realize significant discounts by bundling different types of policies. As a result, getting renters insurance and car insurance from the same provider, for example, might lead to a discounted rate.
Does renters insurance cover fire damage and theft?
Renters insurance covers property damage caused by fire, including everything from smoke damage to replacement costs incurred in the event of a complete loss. Renters insurance also covers theft, and the policyholder will be reimbursed if property is stolen.
Is renters insurance tax deductible?
In certain situations, renters insurance might be tax deductible. It's common for self-employed individuals who work from home offices to claim renters insurance as a deductible expense.
What is personal liability insurance?
Personal liability insurance provides financial protection in cases where the policyholder is found legally responsible for damaging another party's property. It also provides financial assistance in cases where the policyholder is found legally responsible for injuries to another person.
What does renters insurance cover?
Renters insurance covers damage and loss concerning most types of personal property. Renters insurance also provides liability protection if the policyholder is held liable for damage to another person's property. It also covers living expenses if the policyholder's residence is rendered uninhabitable by perils such as fire.
What are the benefits of renters insurance?
Renters insurance offers financial protection. This coverage provides reimbursement if valuables are damaged due to fire, theft or vandalism, and it also helps reimburse the aggrieved party if the policyholder inadvertently causes damage to someone else's property. Knowing that this kind of financial protection is in place can also provide peace of mind.
How much does renters insurance cost?
On average, renters insurance costs roughly $12 per month. This can cover up to $30,000 of property coverage and $100,000 of liability protection.
What is renters insurance?
Though renters don't own the structures they live in, their homes may contain valuables such as furniture, electronics, and computer equipment. Renters insurance protects these valuables from perils such as fire and theft, as well as having to pay out of pocket for any losses or damages.