While there are many types of insurances that exist, if you rent an apartment or home, it can be beneficial to invest in renters insurance. This type of insurance can protect the assets in your home, in the event that disaster strikes. This means that if an event such as theft occurs, you can file a claim to get compensation for your stolen or damaged personal belongings.
This type of insurance is meant for anyone who lives in a house or apartment, but does not own the property. Your landlord is responsible for insuring the actual building, but you are responsible for insuring your personal items with renters insurance. If you choose not to insure, you could lose your personal belongings if a disaster occurs.
Once you file a claim, the insurance agency will determine if you have a valid claim. If you didnt cause the damage to your home, you will likely have a valid claim. The insurance company will then pay you based on your limits and the plan that you have. Certain items, such as jewelry, have a max payout amount.
A standard insurance policy will cover the items in your home that are damaged by theft, fire, plumbing issues, etc. You can choose to invest in an actual cash value or replacement cost policy. An actual cost policy will only pay your items value at the time that it was stolen. On the other hand, replacement cost will pay you what it would cost to replace the item. You can also consider adding renters liability coverage, which can pay for medical care if someone is injured at your home. An agent can help you choose the best option based on your situation.
The main benefit to investing in this type of insurance is having the ability to protect your personal property. You never know when disaster can strike. Another benefit is that you can have less stress. No one likes to live their life in fear. With renters liability coverage, you can also benefit by being able to cover the cost of medical care if a loved one falls or becomes injured while visiting your home.