Need Renters' Insurance? 3 Tips To Choosing A Policy

If you are renting a property, one of the most important things you need to consider is purchasing renters' insurance. While an insurance policy is not required in order to move into a rental home, it is highly recommended in order to protect yourself in the event the home is lost to a catastrophe such as a flood or fire. The following are some steps to consider when choosing a policy:

Choose A Policy Limit

When you are choosing a policy limit, you will need to take inventory of your property. Consolidate the value of all of your property and provide any documentation you have, such as invoices or receipts. Think of everything you own that is of value, such as computers, furniture, expensive jewelry, artwork, and so on. Not only will having an inventory help you choose your policy limit, but it will also help you in the event you need to make a claim.

Check With Several Agencies

Before you make a decision on an insurance agency, do some research on different companies. You can often get renters' insurance from a provider you already use for your automobile insurance. You can also ask friend or other renters you know for a referral. Do not settle on the first quote you receive, as you may be able to get a better deal. When you are researching, ask about what is not typically covered in their renters' policy. For instance, coverage for jewelry and certain electronics may be limited with some agencies. Think about your inventory and use it to help make your decision.

Pay Attention to the Details

Another thing you need to think about is if your policy is for replacement value. If you have a loss and need to make a claim, you need to know how your property will be replaced. One way the insurer will reimburse policyholders is by giving actual cash value to what your property is worth at the time of the loss. It could also pay for the replacement value of the items, which is the money you would have to spend to get a comparable replacement. Replacement value will give you more money for your loss, but this type of policy will be more expensive.

Choosing a renters' insurance policy is a big decision, but a very important one. Talk to a company like Scovotti Insurance that offers property insurance and find out what your options are.