Apartment complexes do not provide coverage to renters for their property in the event of theft, vandalism, fire or other natural disasters. You may think insuring your rented apartment is a waste of money. If you think a about, you know something unexpected could happen. Renter's insurance can provide a sense of security for you.
Why you should buy renter's insurance
More and more apartment complexes require the renter to carry renter's insurance. Apartment complexes do not provide coverage to renters for their property in the event of theft, vandalism, fire or other natural disasters. Without renter's insurance you are also exposed to personal liability. If someone that's visiting you gets hurt in your apartment you could be sued and the cost would come out of your pocket. What if there's hail damage to the roof, or there's a water leak from the unit above you, what would happen if your stereo and TV was damaged? Also, while the damage was being fixed, do you have enough money to immediately fin another place to stay? These are the types of things that would be covered by your renter's insurance policy. Along with personal property and living expenses, your renter's insurance policy will also cover your liability or damage you cause to others or their property. For example, what if there's water damage from your unit that damages the unit below you, do you have the money to cover the cost of the damage to the person below you?
Now that you have decided renter's insurance is for you, there are some things to consider when purchasing your renter's insurance policy;
1. Dollar Amount of Coverage; This is a leading factor in the price and coverage. A dollar amount is not placed on each piece of property, instead a fixed amount for all of your possessions will be determined. Of course, the more coverage you purchase the higher the price of the policy.
2. Deductible: This would be a leading factor to consider in the cost and how much you are willing to pay out of pocket before your insurance kicks in. Coverage is subject to the deductible would be everything except liability coverage, like paying for your visitors medical expenses.
3. ACV(Actual Cash Value) or Replacement Cost: When the insurance company comes to reimburse you for your stereo and TV what they give you is determined by these factors. A basic policy will pay you ACV, which is the value of the property at the time of loss. But, if you opt for replacement cost you will get an actual replacement. For example, your 5 year old stereo will be replaced with as much money as it would cost for you to purchase a new comparable stereo. Expensive items prone to theft such as jewelry and guns, only have limited coverage so it is wise to place these items on a separate policy. Replacement cost is well worth the small amount more it may cost for your policy.
4. Multi-Policy Discounts; You'll be surprised by the discount you get when you place your renter's insurance and auto insurance with Summit Group Insurance. We've seen the savings almost pay for the renter's insurance policy. In other words, by switching your auto insurance to Summit Group Insurance when you are buying your renter's insurance from us as well, the savings on your auto insurance will almost cover the cost of your renter's insurance.
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