We are in the habit of making sure our homeowners insurance is up to date- if you have not done a review in the past 3 years, drag it out, dust it off and check out the fine print. Our goal is to protect our property as well as our wealth in the unlikely event that we have a property catastrophe or heaven forbid someone gets hurt on our property. But what if you live in an apartment, or your kids do… read on.
Renters insurance protects you if you live in a rented abode. Many people don’t consider insuring themselves in a rented situation because they feel that since they don’t own it, they don’t need to insure it. Nothing could be further from the truth.
Homeowners insurance or renters insurance will cover you for a plethora of coverages: fire, theft, personal liability, medical payments, loss of use or additional living expenses, and with specific floaters, coverage on art, jewelry, collections and other valuable articles. Content coverage (personal property) will insure the contents of property for cash value, meaning replacement cost less depreciation or wear. With an endorsement, you can upgrade the policy to replacement-cost basis, which is the cost to buy the item new today without depreciation.
Limits of coverage depend on how the policy is written, and policy premiums may be higher or lower depending on the coverage you seek. Most policies will have exclusions, such as earth movement, flood damage for rising water, mudslide or wave action, mold exclusion and others such as wear and tear, war, nuclear hazard, neglect and intentional loss. Yes, this too can happen even in your neighborhood! Speak with your property and casualty agent for a professional opinion on your insurance needs.
If you rent, be sure to insure. If your kids rent, be a good parent and set an example for them by teaching them about protecting against risk. The cost is minimal in relation to the possibility of loss…and if a parent, who do you think will get stuck with buying that new laptop and flat screen?