Introduction
Today, most of you think a step ahead in order to make your possessions and life safer than before. That is why majority of the people rely on insurance companies. You will be insuring for your family and other life plans. But have you ever thought of insuring your personal belongings? Not many would have placed their thoughts onto it.
Step 1
It was estimated that around seventy five percent of the Americans do not possess rental insurance. Well, you will be surprised to know what the rest twenty five percent would have learned from various facts and policies related to rental insurance.
Step 2
It is very important for you to understand that your personal belonging do not come under landlords insurance. If your valuable possessions like television, jewelry, computer, music system etc. are destroyed or stolen, all your money will be in vain if not registered for rental insurance. It is very interesting to note that an average individual will possess more than 19,000 personal properties.
Step 3
This may be categorized under clothing, furniture, electronics items, kitchen items, art and artworks, sportswear, fitness equipment and the list goes on. In addition to that your jewelries, books and other appliances also add to it.
Step 4
Majority of the people have a misconception that they won’t be able to afford rental insurance. But when you compare with other types of insurances, it is quite cheaper and helps you a lot to save money during an event of a catastrophe. The basic rental insurance includes protection of personal property against theft and destruction. In addition to that, there is also a liability coverage in rental insurance which will exclude you from any kind of liability if a person gets injured on your property. It is highly recommended to consider rental insurance seriously if you plan to rent a house, villa, apartment or other condominiums.
Step 5
Broadly speaking, there are two types of rental insurances, Replacement Cost Insurance and Actual Cash Value Insurance. Replacement Cost Insurance reimburses you with value of the item at the time of damage or when it was stolen, whereas Actual Cash Value reimburses the depreciated value. You will have to pay 25% more for Replacement Cost Insurance compared to Actual Cash Value scheme. But if it is affordable for you, then it is always a better option.
Tips
In order to avail protection for expensive possessions, you will have to join higher levels of rental insurance than the basic ones for better coverage. The basic level avails for a coverage of maximum $2000 for stolen or lost jewelry. If you possess expensive items, it is better to consider higher schemes. In addition, it offers discounts for protective devices like fire extinguishers, burglar alarms, fire and smoke detectors. Some may even offer discounts for clients above 55 years of age or retired ones.
Sources and Citations
Mostly rental insurance includes protection of properties from losses like theft, smoke, windstorm or hail, explosion, fire or lightning, accidental discharge or other sudden damages. It is very important to note that only you will be included in the policy with your possessions and if at all you wish to add a second person, then you will have to pay additional premiums. You will be provided with free software in order to have a better idea on various schemes and how to create inventories for your personal belongings.
