Renters Insurance is Worth the Cost
January 25, 2008
With the economy on the verge of a recession many people are looking for ways to cut costs. Many experts agree that foregoing renter’s insurance should not be a part of those household cuts.
The basic renter’s home insurance policy is known as a HO-4. This type of policy usually covers a variety of losses such as fire, vandalism, crashes from vehicles and planes, floods that occur in the home due to utility failures, falling objects, and many other types of damages. Those seeking renter’s insurance should understand that these types of policies do not protect the renter against natural disasters such as naturally occurring flooding or earthquakes. Those can be purchased through separate rider policies.
Insurance experts also agree that when shopping for renter’s insurance individuals should learn if the policy will reimburse in either ACV (actual cash value) or RCC (replacement cost coverage). ACV pays you the value of your property at the time it was damaged while RCC will pay you the amount that it would cost to actually replace the item today. In general, RCC is the much better policy to have on hand.
Many polices will also protect you against liability suits should someone be injured while inside your home.
According to Insure.com, you should expect to pay approximately $150 to $350 dollars a year for a general policy that does not cover any extraneous items. Policies in this price range will normally cover about $35,000 for your property and provide between $100,000 and $300,000 worth of liability protection.