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Five Tips for Understanding Renter's Insurance from The Reis Group

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Five Tips for Understanding Renter's Insurance

by Allison Teetsel on Nov 2, 2015

In the event of a tragedy such as fire or theft, renter’s insurance can help you to replace your belongings and get back on your feet. Despite how important it is, the majority of renter’s forgo renter’s insurance. Many falsely believe that their landlord’s insurance will cover their personal belongings. Others avoid it because they think insurance is too complicated. If you fall into this latter category, we’ve got some help for you. Read on for some tips to help you avoid confusion when buying renter’s insurance.

  1. Understanding the Claims Process is Critical. Don’t wait until you need to file a claim before you learn the process. Make sure that you know which numbers to call, who you’ll need to speak to, and exactly what you’ll need so that you can be prepared when and if the time arises.
  2. Don’t Guess the Value of Your Possessions.  It is vital that you determine the true value of your personal possessions. Guessing can cost you a lot of money in the long run. Make a thorough, fact-based inventory and keep it safe and ready to grab when it’s needed.
  3. Learn the Limits of Your Coverage.  A typical renter’s insurance policy may place a cap on some items of higher value, such as jewelry and electronics. You may need to purchase additional coverage for these items.
  4. Learn About Loss of Use Coverage. While often overlooked by renters, Loss of Use coverage can be the most useful element of your renter’s insurance coverage. Loss of Use coverage pays for certain items such as hotel bills or temporary rent payments if you become displaced from your home while the property is being fixed or replaced.  Be aware of whether or not you’re covered up to a specific dollar amount, or for a certain period of time.
  5. Understand the Difference Between Actual Cash Value and Replacement Value. Actual Cash Value (ACV) will take into account the depreciation and use of damaged items, while Replacement Value (RV) considers the amount it would cost to purchase a brand new item. Both types of coverage have their benefits, and carry different premiums. Talk to your insurance professional about which type of coverage is best for your needs.

To learn more about renter’s insurance and how it can help protect you, contact The Reis Group today.

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