The most important commodity which can help us from various risks and claims is Insurance. They are various types of insurances which you need in the daily life. Some of the insurances which will help a person a lot are life insurance, health insurance, renters/home owners insurance.
Now-a-days, many people are showing interest in buying renter’s insurance for insuring the household items. It covers all the items which are present at home.
A disaster does not know whether it is an rented building or owned building. The same amount of risk is there both renters as well as the owners. The home owners insurance will only protect the building and its structure but it will not protect the items or the possessions which are inside the house. In those cases, renter’s insurance will help a lot for protecting the belongings.
The various types of disasters which are included in the renter’s insurance are fire or lightening, explosion, smoke, theft, volcanic eruption etc. But, the floods and earthquake disasters are not included in this renter’s insurance. A separate insurance is to be taken for those cases, if people are living in those prone areas.
The price of the coverage will always depend on the amount of the insurance you need. All the property should be included in the renter’s coverage as all the property can be lost in any disaster like fire.
The various terms which are included in the renter’s insurance are deductible, actual cash value and the replacement cost. The premium costs are influenced by the amount of deductible premium paid. As the cost of the deductible is more, the cost of home renters insurance will be less.
One should also know whether the insurance company is offering actual cash value or the replacement cost. If the company is offering only the actual cash value in those cases, it will pay only the cost of the item at the time of loss. Where as if the company is offering replacement cost, then in those cases it will provide the actual replacement value of the item without deduction for depreciation.
These are the different things which are to be kept in mind while selecting the renters insurance.