Tenants Should Consider Contents Insurance To Protect Themselves

Renting a house, apartment, or condo, is a way of life for many individuals and families across the world.  The landlord is responsible for the upkeep and insurance associated with the home.  The landlord does not provide contents insurance for tenants.  It is the renters responsibility to protect their own things.

Renters insurance cost a lot less than homeowners insurance does.  The renter is only insuring their personal belongings.  Since a contents policy does not include the structure or liability for injuries on the property, premiums are significantly lower.  The companies consider the possibility of having to pay for damage much less than with a traditional homeowner’s policy.

It is crucial, that the tenant know what their contents are worth when shopping for contents insurance.  Be aware that things such as valuable jewelry, furs, or collectibles may require additional rider policies.  A tenant needs to disclose what they own in order to secure appropriate coverage.

Another consideration is replacement value insurance.  Most policies will pay for items based on their current value plus the depreciation of the item.  This is insufficient coverage to pay for replacing an item.  Replacement value covers the cost of buying a new one.  It does not consider the original cost, depreciation, or current cost.

Renters insurance cost of considerably reasonable in comparison to many other types of insurance.  A family of four can cover the usual furniture, clothes, and other items for around three to four hundred dollars per year.  The price will vary based on the geographical location, value of contents, deductible and history of claims.

The peace of mind that content insurance for tenants brings is worth the price of the policy.  Just knowing that the individual or family is protected in case of disaster is reassuring.  The cost of having to replace everything a person owns is unsettling at best.

Some people prefer to take a chance will never need the coverage.  Overnight that chance can turn to tragedy.  A house fire, tornado, or flood does not normally announce itself and give the renter time to prepare.