A Beginner's Guide to Renters Insurance
California Renters Insurance is a type of property insurance that protects tenants living in an apartment. Most of the time, renters usually underestimate the costs of their properties. If you’re a tenant, having Renters Insurance could give you security in the event where unfortunate things happen.
The state law does not require Renters Insurance or otherwise called Tenant’s Insurance. However, some landlords include renters policy as one of the requirements before tenants apply to live in their homes. Whether it is required or not, it is always smart to purchase this type of insurance. Moreover, it can save you from an immense financial loss when unfortunate events occur.
Claim Payments in Renters Insurance
- Replacement Cost Value: Pays for the replacement of your damaged properties as well as things that are lost. It provides enough to replace the items at their current market value. For example, the phone you use for three years gets stolen in your apartment. Your insurer can offer the current replacement value for a new phone with a similar model.
- Actual Cash Value: Pays for replacing your possessions based on their original prices from the time you bought them. For example, you’re using an old laptop, and suddenly it’s not working anymore. The actual cash value offers the same amount as your old laptop costs by the time you bought it. So for you to be able to buy a new one, you’d have to pay the difference.
What Does It Not Cover?
- Water Damages such as floods
- Undocumented Belongings
Factors That Influence Renters Insurance Cost
Insurance companies consider some factors that influence your California Renter Insurance Cost. The rates vary by state and in the amounts of coverage. As a matter of fact, compared to other types of insurance, Renters Insurance is cheaper. Here some factors that affect the cost of your insurance.
- Value of Your Belongings: The price of your belongings affects your insurance rate. If you have collections of jewelry or antiques, you may want to add special coverage to protect those things. It is wise to create an inventory of your belongings. In doing so, you can make the process of filing a claim easier and faster.
- Alarm Systems in Your Apartment: You can receive discounts if you have smoke detectors or deadbolt locks installed in your apartment. Moreover, having these things installed may as well lessen the risks you will encounter.
- Pets: Having pets will not greatly affect your insurance rates. However, if your pet causes injury or damage to your visitors or neighbors, you may need additional coverage.
What Does a Renters Insurance Cover?
Homeowners Insurance and Tenant’s Insurance have some similarities when it comes to coverage, such as theft and property damages. As a matter of fact, California Renters Insurance is less costly because it only covers your belongings and not the building. However, if you have expensive belongings, it may as well increase the average cost of your coverages. Here are typical insurance coverages that Renters Insurance provides.