How Renter Insurance Can Help You

| November 4, 2012
How Renter Insurance Can Help You

How Renter Insurance Can Help You

What kind of furniture or the other things at home we buy when it is about furnishing a rental house. Typically the ones picked up in super clearance sale, the ones from hand me downs and the ones from garage sales? Well, we all do that. But the only thing that is done only by few people is to go for the rental insurance. It’s just like any other policy you take on your vehicle, life etc. If you had your own house, you would have insured it. The same way now that we have furniture in hand and we need to insure it against all kinds of loses like theft, fire etc. When we think of insuring at the first go, we may think that they are all bought in cheap sales and why do we need to insure at all, considering the low value. But when you put them altogether and value them, it costs so much that it will be difficult to pay from your own pocket on any unfortunate loss.

Renter insurance help

How renter insurance can help you when your stuff is stolen depends on the kind of policy that you choose. The wide range of these policies benefits you in many ways. Few help repay the cost partially whereas few other types help repay the cost in full. Here is a look on how the stolen stuff can get replaced or the cost can be borne by the insurance agency.

ACV/ Actual Cash Value:

This is one type of renter insurance where the furniture or goods are insured at the actual value on the day when they are stolen. This actual value is computed basing on the depreciation that the product would have one through upon the usage. The best ex is the consumer goods. If you have an electronic tablet worth 200$ on the date you purchased. You insured it with an ACV policy. If it gets stolen after 1 yr, the insurance company will pay you the value as on that date which could be 100$, after the depreciation. The pretty much chances are that you will have to pay the remaining 100$ and get a new one. Usually this policy has a lesser premium considering the less return.

Replacement Value:

This is the policy where you get the actual cost of the product is being repaid to you. If you lose a tablet of 200$ which is insured with this policy then you get 200$ as the claim paid by the insurance company. However, here the premiums are a bit higher.

Additional coverage

Other than these two policies you may want to get an additional coverage for the high value products as Jewelry etc.  If you can bear the cost it is always better to go for the replacement value policy in case of goods which are easy to be stolen like Vehicles, jewelry etc. because though you pay a bit higher premium now, you can always get paid back the complete cost so that you do not have to invest any more on buying the product again.

Author Bio: Joene Knott works for RentersInsurance.net an informational website about hosing insurance.

How Renter Insurance Can Help You

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