Many renters don’t understand that their landlord’s insurance doesn’t cover their personal property. Renters insurance is designed to give you financial protection if a catastrophe destroys your apartment and your personal property. Without it, recovering would be very hard.
Understanding the Difference between All Perils and Named Perils
Named perils only give you coverage for things that are named in the policy. If some unnamed situation destroyed or damaged your possessions, you’d be out of luck because your policy wouldn’t cover any of the damage or destruction.
Understanding the Important Difference between Replacement Value and Actual Cash Value
One of the most important things any renter needs to understand before taking out a renter’s insurance policy is the difference between replacement value and actual cash value. Things you own depreciate over time. If you bought an expensive computer a year ago, it wouldn’t be worth what you paid for it today.
With actual cash value, the insurance company adjuster will figure out how much you’ll get by subtracting depreciation from the actual cost of your property. With replacement value, you would get however much it would cost to replace the property today, without considering depreciation.
Be sure to talk to an independent agent in Universal City, TX to discuss policy differences and clarify confusion. Also be sure you understand the distinction between replacement and cash value. While you may pay more for a renter’s insurance policy that pays for replacement value, you will get peace of mind in knowing your property is replaceable.
Make an inventory of your property, especially your valuable possessions. That will help them guide you in getting the best coverage for your needs. Ask about available bundle discounts for combining auto and rental insurance with the same provider.