Rock Talk

What to Know About Renters Insurance

Last updated on May 16th, 2017 at 02:40 pm

It doesn’t cost that much, helps to protect your possessions and gives you peace of mind — I’m talking about renters insurance.

Most homeowners have a mortgage and are required to have homeowners insurance as part of their loan agreement. If you’re a renter, like me, your landlord may make renters insurance a lease requirement. Otherwise, the choice to have it is yours. Either way, renters insurance is a must have for renters everywhere.

What to know about renters insurance:

  • Renters insurance is a type of insurance that provides coverage for your lost, damaged or stolen personal possessions. It also provides coverage for injuries to another person that might occur in your rented home or apartment.
  • Just like homeowners insurance, renters insurance provides financial reimbursement to cover a tenant’s lost or damaged possessions as a result of fire, theft or vandalism.
  • The price will vary depending on how much coverage you select and where you live, but the National Association of Insurance Commissioners says the national average for renters insurance is $15-$30 per month.
  • You can get discounts if your residence has certain safety features like a sprinkler system, alarms or fire extinguishers. If your car insurance provider also offers renters insurance you could be eligible for a discount. Be sure to ask about ways to save.
  • There are two types of coverage you can purchase: ACV and RC. ACV means Actual Cash Value and takes into account depreciation and usage of your items. RC means Replacement Cost. You’ll be able to replace your items and have the cost covered. Because an insurance company could have to pay out more on a claim with RC coverage, this coverage option is typically more expensive.
  • Natural disasters are usually not covered by renters insurance and you may need to purchase additional coverage.

Whether you own or rent your home, I can’t recommend insurance enough. It’s the best way to protect you and your belongings. Are you a renter? Find out what Plymouth Rock Assurance can do for you by getting a renters insurance quote.

Click here for more information about insurance in your state.

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