Personal Line Insurance
The first time most people think about insurance is with
their first car or home. Usually this is because the law
or bank requires us to do so. Although renter's
insurance is usually not required, it is just as
necessary to have. Not only will renter's insurance
protect your personal items, it will also give you help
with temporary housing and liability protection such as
medical expenses for people on your property or a lawyer
if you are sued by someone unintentionally injured by
you. Once you determine your need for renter's
insurance, knowing your options will help you choose the
If the ceiling in your rented property is damaged by wind or hail in a storm, of course the ceiling is covered by your landlord. But what about your brand new stereo and TV that was damaged? Also, while the ceiling is being fixed, do you have enough money to immediately find another place to stay? These are the types of things that would be covered by your renter's insurance policy. Along with personal property coverage and living expenses, your renter's insurance policy will also cover your liability or damage you cause to others or their property.
When the insurance company comes to reimburse you for your stereo and TV what they give you is determined by these factors. A basic policy will pay you ACV, which is the value of the property at the time of loss. But, if you opt for replacement cost you will get an actual replacement. For example, your 5 year old stereo will be replaced with as much money as it would cost for you to purchase a new comparable stereo.
if you feel your personal property is not worth enough
to insure, the value of having liability coverage is
well worth renter's insurance.