How Renters Insurance Can Protect the Family

Does your family live in an rented home or apartment? If so, then you are going to need renters insurance. It's easy to assume that since you don't own the property or the actual structure that your family is living in, and cannot get homeowners insurance, that there isn't a type of insurance policy that will help protect your family. Fortunately, renters insurance is designed specifically for people who are home renters or apartment dwellers.

Your renters insurance covers the cost to repair or replace the things that you, or you family, owns. One of the first things you should do when you apply for renters insurance is to take an inventory of all of the property that your family owns, and have brought into the apartment. Expensive items like televisions, computers, and jewelry are especially important to document. Write down the serial numbers of each item, and take clear photos of everything. This will make it much easier if you ever need to file an insurance claim because one of those items was stolen or damaged.

If you have renters insurance, then your insurance company will compensate you if your property becomes damaged, or if it is stolen. You may be offered the actual cash value(ACV) of the item. This means that the insurance company will only give you the amount of money that is equivalent to what that particular item would cost to replace today. If you bought your television or computer five years ago, then the amount it is worth today would be less than what you originally paid for it, which is something to keep in mind.

Or, your insurance company will offer you the replacement cost, which means that they will pay to replace the item you lost with a similar item that is available for purchase today. Make sure you take the time to find out which way your insurance company will compensate you, because this can make a very big difference. Without renters insurance, you will have to pay out of pocket to replace these items.

Renters insurance is what protects your stuff in case there is a fire in your apartment or rented home. It also protects you from damages caused by smoke, hail, windstorms, lightning, volcanic eruptions, or as a result of being crushed by ice, snow, or sleet. It protects your belongings from theft, vandalism, riot, falling objects, or damages caused by a vehicle or aircraft that crashed into the building itself. It can cover water or steam damages to your belongings due to a plumbing leak or overflow, or a malfunctioning washing machine, dishwasher, or air conditioning unit. It should also cover damages caused by a fire protective sprinkler system. It might not cover damages caused by natural flooding, so be sure to ask your insurance agent specifically about that.

What if the damages cause your apartment or rented home to be unlivable, until repairs have been made? In this case, the renters insurance should cover the cost of your dditional living expenses If your family needed to move into a hotel while the repairs are being done, renters insurance covers the cost of the room and your meals.

Another important part of renters insurance covers liability. If someone comes to visit you, and becomes injured, the renters insurance will cover the cost of that persons necessary medical care. It also covers your court costs, if that injured person decides to sue you.