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How To Protect Your Stuff With Renters Insurance

By Jason Markum

We get so caught up in America talking about health insurance and also car insurance and homeowners insurance (and life insurance, and even disability insurance for that matter) that we often don’t talk about renters insurance as much as we should and because of this millions of renters don’t get the coverage that they need and deserve.

I’ve always wondered why that is? Is it because we just don’t take renters seriously? I mean a homeowner; that’s somebody who’s invested a lot of money into purchasing a house. We think of them as more responsible steady members of society and homeowners insurance goes hand-in-hand without even thinking about it.

Renters on the other hand; well… they’re just renters. What do they have worth insuring anyway? I don’t know if it’s because we don’t think of renters as serious members of society because they don’t own their own home or if we just don’t bother to worry about them for some other reason… but the fact of the matter is renters have just as much right to have their possessions insured as everybody else and that’s what I’m going to talk about in this article today… how to protect your stuff with renters insurance.

Today the statistics say that only one person in five who rents has their stuff insured with liability insurance. This is just absolutely amazing! This figure should be much higher and hopefully after reading this article it will be since all of your renters will go out and buy renters insurance ;-)

Generally speaking the person that owns the building you live in, the landlord, will have insurance. That insurance will usually only cover the building, and not your possessions. So if there’s some sort of problem like a fire or flood or earthquake or something like that, your stuff won’t get covered if it is destroyed. Likewise, if there is a theft and somebody robs you, that landlords insurance probably won’t cover you for that either.

First thing you need to understand is that you need a policy that has full replacement coverage. That’s gonna cost you a little bit more but is well worth it because a policy without it will usually only cover the cost of your items minus depreciation. So if you had that TV for say, five years, the insurance company may claim that it is worth zero dollars since all of it’s value will have depreciated away. That’s why you need a full replacement coverage that replaces your items no matter what.

Most policies will only cover say $25,000 worth of loss and for many people that’s nowhere near enough money to replace all of your items. Luckily for just a few dollars more per month you can raise the limit up to $100,000 or more.

If you have especially expensive items like jewelry etc, you may want to have them insured separately instead of lumping them into your renters insurance policy.

Finally not all insurance companies are created equal, but in the case of rental insurance it’s usually quite okay to go with a discount insurance broker. Shop around for the best value and the cheapest costs and you should be just fine.

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