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Renters Insurance

Kalamazoo & Portage Renters Insurance Policies

Kalamazoo & Portage Renters Insurance Policies

What Is Renters Insurance?

When an individual obtains renters insurance, they are not only protecting themselves but also their property. This insurance is important because, in the event of an emergency, a landlord will only cover their property or possessions and not their tenant. In addition to paying a monthly premium for their plan, renters are also required to pay a deductible once they choose the amount of their coverage.

What Is Typically Covered?

Often, like homeowner's insurance, this type of insurance typically offers coverage for damage related to weather, fire, theft, utility (electricity or plumbing) malfunctions, vandalism, or other hazards. Two hazards are typically not covered by renters insurance. They include earthquakes and flooding because, if you live in areas prone to these natural disasters, specific policies are necessary.

How Much Coverage Is Necessary?

When renters choose their coverage, it's solely dependent on the value of their possessions. Under some circumstances, a few thousand dollars in coverage is enough, while in other cases that are not nearly sufficient. The best thing to do is create an estimate for the value of the property on the rental property, and then determine how much coverage is necessary. This effort prevents undervaluing or overvaluing policies.

Personal Liability:

Some policies also offer coverage for personal liability depending on budgets, as well as how much protection the renter feels they need. If an accident occurs on the renter's property, such as a slip or fall where an injury occurs, and the renter faces litigation, this liability coverage offers the protection they need.

How Does Rental Insurance Work?

There are two different policies renters can choose from including one that is actual cash value (ACV) or replacement cost for their possessions. When using an actual cash value (ACV) policy, renters will receive a reimbursement for items lost only by their current value. When using a replacement cost policy, renters receive a reimbursement for the retail value of their possessions lost.

The Benefits Of Inventories:

Renters who choose insurance should take inventory of their possessions when obtaining their insurance policy. While this record doesn't need to be a detailing of every single item in the rental unit, all items of value should be on this list. Renters should begin their list with their most valuable items, keep their purchase receipts in a file, and take photographs of everything. Photographs should also be taken of every room in the rental property, including the inside of closets and cupboards. As a safety precaution, renters can email this inventory to themselves or store it in a "cloud" storage system to prevent it from becoming destroyed during a hazard.