Renters insurance may seem like a policy you can go without, and maybe you will never get in a situation where you’ll need it. But no one can predict the future, because the catalysts themselves are unpredictable. Here you will see why renters insurance is a must, and why it’s a good idea to buy it before it’s too late.
Additional Living Expenses (ALE) Coverage
Renters insurance is frequently spoken of in reference to possessions lost, but one underrated quality is that you can get additional living expenses (ALE) coverage to supplement your renters policy in case your entire apartment or other rental complex is destroyed. In an event like this, you’ll be left without anywhere to stay, with most or all of your possessions gone.
This serves to protect you in those times. You’ll get help covering costs for hotel rooms (or any other temporary living area), food, and other necessities as the place you’re living in is being repaired.
You Choose How You’ll Be Reimbursed
Renters insurance allows you the freedom to choose between two types of coverage – replacement cost and actual cash value.
Replacement cost coverage is more expensive than actual cash value. With replacement cost, you’ll get enough to purchase a newer version of what was stolen or destroyed.
Actual cash value disburses funds according to what the stolen or damaged item’s current worth is. While not always enough to buy a brand new replacement, it is enough to serve as a financial relief so that you won’t have to cover everything out of pocket.
When deciding between the two, it’s best to take note of how much each of your personal items are worth. This will give you a clear idea as to the exact figure you need your policy to cover. This way, you won’t be undercompensated.
Some Landlords Require It
Perhaps the most compelling reason for renters insurance is that you may not be able to rent an apartment, condo, or duplex without it. Not only that, but your landlord will likely require proof that you have it before allowing you to rent. This is just as much of a liability protection for your landlord as it is for you. It’s less stressful for everyone involved.
This ties into one aspect of renters insurance that gets overlooked – legal protection. If someone gets injured and wants to file a lawsuit, your renters insurance policy will help provide you with funds to help cover legal fees up to certain limits. The minimum liability coverage for most renters insurance policies is $100,000.
Protect Yourself Today
All Things Insurance will find you a renters insurance policy that works just for you. Give us a call today to learn more about renters insurance and how we can help!