In our previous article; tips to buying landlord’s insurance in Nigeria, we’ve taken time to explained extensively the basic things you need to know about landlord’s insurance whether you’re already a landlord or you are planning to be in the near future.
Today, we wish to share with you what renters insurance is all about and the various reasons why you need it. First of all, let me quickly stress here that just because you’re only renting, and not a landlord or homeowner, doesn’t mean you shouldn’t protect your belongings with insurance. Renters insurance is designed to protect those who are renting a space ad has most of the same benefits as home insurance.
Here’re are the basic things you must know about renters insurance. Renters insurance is just like many other property insurance policies, where the renter can choose the amount of coverage they need and the price – or deductible – they would pay upon the event of a claim. Those purchasing renters insurance will pay a monthly premium payment based on the deductibles and amount of coverage they choose. Renters insurance will cover the value of personal belongings and expenses in the event of an emergency.
What are the Benefits of Renters Insurance?
Renters insurance is smart choice to protect your finances against potential loss. It also protects you against theft. Sometimes, renters insurance will even cover the cost of alternate living arrangements should the place you’re renting become uninhabitable due to an event. It’s also good for liability coverage should someone experience an accident while at your place.
What Renters Insurance Cover
Renters insurance is intended to cover the renter’s personal belongings in the event of a fire, theft, vandalism, utility issue or other weather-related damages. Typically, flooding is not included in renters insurance, as it is not in most insurance policies. Renters insurance policies will outline all of the hazards that are covered, so it is important to review what is and is not covered.
Most renters insurance policies will include personal liability coverage, which helps protect a renter if someone is injured at their home. Liability coverage usually covers any legal or medical expenses of the injured person that are related to the accident. Renters can determine how much they wish to have covered under their policy.
How to Calculate Renters Insurance
It is important to make a list of all your valuables and expensive personal items, such as a computer, television or other high-cost items, to be included in your renters insurance policy. Make note of how much you paid for the items and when you purchased them. Keep all receipts of the items you are insuring. This will provide an estimate for how much all of your possessions are worth and the amount you will need in coverage, should everything be damaged or stolen.
Types of Reimbursement Costs
Here’re the two types of reimbursement costs. When purchasing renters insurance, renters will need to choose one of two options for payouts – replacement cost or actual cash value. Actual cash value provides payment to you for the current value of the damaged or stolen item. Replacement cost will reimburse you for the retail value of the damaged or stolen item. Actual cash value policies are generally cheaper than replacement, but most prefer replacement cost as it provides the actual price you’ve paid for the item.