076: Renter’s Insurance - Basics

Happy Friday! All this week I was focusing on homeowner’s insurance. Now, let’s shift gears and talk about type of insurance that would be appropriate for those of us who don’t own a home and chose to rent instead. Just because you don’t own a real estate, doesn’t mean you don’t need think about protecting personal property and yourself because unexpected events can arise, such as break ins or visitor’s injury.

Renter’s insurance protection:

Personal property

Think about everything you own. At first, it may not seem like a lot of value items, but if you had to replace everything and start from scratch, now...those costs can add up quickly. The protection for personal property generally applies to certain risks (also referred to as "perils"), such as fire and theft, if your computer and television are stolen, or your furniture and clothing are destroyed by a fire, this coverage may help you pay for the cost of replacing them.

Two options you have for personal property coverage

  1. Actual Cash Value - typically covers belongings up to their current market value (taking depreciation into account)
  2. Replacement cost - replacement cost coverage may help you pay to replace your items at today's retail prices after a covered loss

You will have to do an inventory and come up with the list of items you want to cover as well as decide how much and what type of coverage you might want to obtain.

Note, that  jewelry or a coin collection, have limited coverage under a standard policy and you may need to buy additional coverage separately.

Check out this neat website I found recently, https://knowyourstuff.org/ which allows you to create an list of your personal property and keep it all in one place online.

 
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