Top 5 FAQs About Rental Insurance
Rental insurance is a valuable, and affordable, safety net against costly emergencies which apartment renters can sometimes face. If you are thinking about renter’s insurance, check out these FAQs to find out if this insurance is right for you.
1. Why Should I Buy Rental Insurance?
In the event of an emergency, such as fire or vandalism, the landlord is only responsible for replacing the structural aspects of your apartment – but if any of your personal possessions within the apartment are ever damaged you will have to pay to replace them. Renter’s insurance offers financial protection against the replacement of any of your personal items if they are damaged in an emergency.
2. What Does Rental Insurance Cover?
While policies for renter’s insurance varies, most types of insurance for renters covers personal possessions damaged through: electrical surges, explosions, civil upset (such as a riot), hail, falling objects, fire, lighting, roof collapse due to accumulated ice or snow, smoke, theft, vandalism, and water utility damage. Most basic rental policies do not cover water damage from floods or damage to possessions which occurred as a result of a hurricane.
Additional emergencies which may be covered on an insurance policy for renters include: liability coverage if someone in your apartment is injured and then sues you and living expenses if you cannot stay in your apartment due to damages caused by an emergency covered on your policy.
3. What is the Difference Between ACV and RCC Insurance?
When renters purchase insurance to protect their belongings, they may choose from actual cash value (ACV) insurance or replacement cost coverage (RCC) insurance. ACV insurance only covers the cash value of items insured, but RCC insurance covers the total amount it will cost to replace damaged items.
4. How Much Does Rental Insurance Cost?
The amount of rental insurance on your policy will depend on the total value of your property and the type of policy you choose. However, the average insurance policy for renters is between $200 to $300 dollars per year for between $30,000 to $50,000 dollars worth of possessions.
5. Where Can I Find Rental Insurance?
Most insurance companies who offer policies for homes and vehicles sell insurance policies for renters. You may also find rental insurance through online sources – however, before you commit to an insurance policy through an online company always double check the company’s reputation and customer reviews.