Renter’s insurance provides a much needed peace of mind when living in a home that is owned by someone else. Life is unpredictable and so are accidents and emergencies. If the roof fails in the home and an individual’s belongings are ruined, there is no reparation from the landlord. Contrary to popular belief, the owner’s insurance will not cover the tenant’s belongings.
Renter’s insurance is, by far, a much more cost efficient assurance through the trials of any situation. Materialistic things are not the beginning and the end of the world, but that special leather couch does account for a great portion of comfort in life. Check out a few of the most important pieces of information every renter should know about renter’s insurance.
Paying in one lump sum can save money in the long run
It is always a bonus to save money, and paying on a renter’s insurance policy in one lump sum can save more than a hundred dollars a year. It is common that insurance agencies offer price breaks when individuals go ahead and pay for a whole year.
Paying a monthly payment on a renter’s policy is typically an option, but renters tend to pay quite a bit more per year. Installments can cost up to $10 more per month, costing an average of $120 per year more than a lump sum payment.
It is crucial to understand the claims process
It is crucial to understand the claims process prior to ever filing a claim. The process can be very specific, and if one step is neglected it can flub up the whole process. Know what numbers to call and when to call them.
Know exactly who to speak to about an incident and what information needs to be collected and presented for a fully legit claim to be filed. It is a tremendous benefit to have all the proper information in one place before filing a claim.
Gather together a thorough and complete inventory
The vast majority of renters have no clue that their belongings are worth so much. The average renter owns around $20,000 worth of stuff, and have no idea. It is crucial to have record of exactly what property is being insured.
Take the time to collect a thorough and accurate inventory of everything in the home. One of the most unfortunate happenings of renter’s insurance claims is that people underestimate what their stuff is worth. Do the research to obtain accurate values.
Get reimbursed for living expenses if displaced
One of the most important aspects of renter’s insurance is that there is provision for displacement. Displacement provisions are also the most overlooked aspect of a renter’s insurance policy.
There are built-in clauses that offer benefits for the “Loss of Use” of a home in the case of an emergency. The coverage will pay for the cost of a hotel or temporary rental payments.