Spend now or save later? It’s a centuries-old dilemma that is now closer than ever. Whether making the decision to buy a 4K TV or postponing your Hawaii dream vacation can be a healthy financial decision, one corner we suggest not to cut is to buy tenant insurance.
Imagine that you come home from work, you find that your apartment is broken, completely stolen. Your precious stereo system and beautiful porcelain are gone. Or even worse, suppose you return from a long weekend only to find out that a fire has broken out in your kitchen. You can not assume that your landlord will pay for your damaged or lost property. In fact, you can probably guess they won’t. You will need a tenant insurance policy to help compensate for your losses.
Unfortunately, tenant insurance often falls under the radar. About 80% of tenants do not have tenant insurance. That’s a staggering number considering that a typical policy costs between $ 150 and $ 300 a year, depending on where you live. For this reason alone, tenant insurance is a great idea for anyone renting a house, apartment, flat or other home.
How much coverage do you need?
The first step in getting a tenant insurance policy is to add up the value of everything you would like to replace if it was damaged or stolen, including clothing, electronics, furniture, and appliances. Write down the serial numbers of the devices և electronics. In the event of a fire, keep a copy of the list outside your home (possibly at work). You can also take photos or videos of your most expensive items. This will make it easier for them to claim if they are lost or stolen. (Read more on how to create a home inventory here).
The other thing to consider is the “actual cash value” (ACV) or “replacement cost” of your item. As the name implies, ACV coverage will only pay for what your property was worth when it was damaged or stolen. Under the actual cash value policy, if a tree falls out of your window և destroys your computer, which was worth $ 2,500 when it was new four years ago but now costs only $ 1,000, you will only receive $ 1,000 (minus your deduction) for the damaged product. Replacement costs, on the other hand, will pay for what is actually worth replacing your lost items. Coverage of replacement costs will cost you more in the form of surcharges, but it will also pay more if a claim is ever required.
What else is covered?
Personal liability coverage Protects you, the tenant, and anyone who might visit your home or apartment in the event of an accident. If the person visiting you is injured in any way, you will not be liable for any injuries. If necessary, your policy may even pay for your legal protection in these circumstances.
Loss of use / Temporary accommodation will cover you if your house or apartment becomes uninhabitable due to fire or other disaster. In general, this coverage provides temporary relocation housing while your home is being renovated or rebuilt.
Car interior Many tenant insurance policies also include the property you keep in your car (CDs, books, laptops). Note that the cost of the car itself is not covered, և usually installed stereo equipment (often considered a “part” of car systems) is also not covered.
What is not covered?
Earthquakes, floods and landslides are not usually covered by rental insurance. If you live in an area where these natural disasters are common, coverage for your personal property lost in one of the above cases should be purchased as a supplement or through a separate insurance policy in general.
Are you ready to buy tenant insurance policy? We have good news for you. GEICO can help. Call us 1-800-841-2964: talk to a licensed insurance agent or get online tenant insurance quotes.
The above is intended as general information ընդհանուր as general policy descriptions to help you understand the different types of coverage. These descriptions do not apply to any specific insurance contract, nor do they change the definitions expressly stated in any insurance contract. We encourage you to talk to your insurance agent և read your policy agreement to fully understand your coverage.
By Chris McLaughlin