Why should I invest in renters insurance?

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Have you ever considered how much all of your belongings are worth? If they were damaged or stolen, would you be able to pay to replace them? If not, a renter’s insurance policy could help.

For around the cost of 3 Starbucks coffees a month, you could protect your personal property. Renter’s insurance protects your most prized and personal possessions from fire, theft and vandalism, and at a minimal cost of $12/month on average, is well worth the investment.

What should you look for in a renter’s insurance policy? Here are four common features that should be on your radar.

1. Replacement Cost:
Replacement cost refers to the money needed to replace lost items, rather than an insurance company reimbursing you for what the items would have been worth. This is important because the amount that the stolen or damaged articles would be worth often is considerably less than the money needed to buy new ones. For example, the laptop you bought five years ago isn’t worth nearly as much now as it was then. So if you have replacement-cost coverage, you can afford to buy a brand-new replacement laptop.

2. Electronics Coverage:
Many renter’s insurance policies place a dollar limit on any item that falls under the “electronics” category, so you have to buy additional protection to make sure pricier items are adequately covered, such as laptops, stereo systems and TVs. If you value your electronics, you should be sure that you’ve got enough coverage.

3. Deductible:
Before your insurer pays your claim, you’ll likely be responsible for paying a deductible—an established out-of-pocket sum for repair or replacement of something covered by your policy that’s been stolen, damaged or destroyed.
Typically, renter’s insurance deductibles range from $500 to $2,000. If you go with a low deductible, you’ll recover more money if you need to file a claim. However, keep in mind that the lower your deductible is, the higher your premium—the amount you pay for your insurance—will be.

4. Worldwide Coverage:
Worldwide coverage protects your personal property wherever it is, like San Francisco or Singapore. This coverage is available if you buy what’s known as a “personal articles” floater—added coverage for valuable items like jewelry or musical instruments. Renter’s insurance policies usually offer little coverage for such belongings ($1,000 per item, for example), so it may make sense to purchase a floater if you own high-value stuff.

Remember to always PROTECT YOURSELF AND YOUR BELONGS! Wanting more advice on this or other issues? Call the Rental Guys! We can help!

BY: GUEST CONTRIBUTOR | http://blog.sparefoot.com

Information is deemed reliable but not guaranteed.