Renters Insurance FAQ Save Time & Money with this Renters Insurance FAQ Presentation

What Determines the Rate I Pay? Several factors determine the monthly premium on your policy for your home, apartment, condominium, or townhouse. One factor is the coverage type. You can decide on actual cost value (ACV) or replacement cost value (RCV). If you choose ACV, your premiums will be lower each month; however, it is important to realize that when you experience a loss, the insurance company only pays for the actual cost minus depreciation on the items. If you opt for RCV, your premiums are higher, but when you experience property damage or loss, the payment for replacement is the actual cost of the items without depreciation. Another aspect of this FAQ is to understand that the premium you pay to cover the property in your house, condo, or loft, can be lowered by insuring other properties with the same insurer. In addition to your renters insurance, you can purchase auto insurance, for instance, and by doing so, you get a reduced premium.

What Does Renters Insurance Cover? Renters coverage protects items like: jewels, clothes, televisions, electronics, rugs and carpets, appliances, and furniture. It also covers laptops, iPods, and other mobile devices. The great part is that if you take these portable items with you, they are still covered wherever you are. So, if you're at school or the office, and something happens to your portable stuff, your policy will pay to have the items replaced. Another aspect of this renters insurance FAQ is to understand that whether you are a senior citizen in a retirement community, a college student in an off campus patio apartment, or a family in a little bungalow, your property is covered against certain named perils. The perils typically covered are: liability, fire, wind damage, vandalism, theft, electrical surge, water main break, and falling objects, just to name a few.

What Happens if my Place Burns? This is an important renters insurance FAQ to take note of. If your apartment or house is demolished by fire or if a water main breaks and floods you out, you need to have coverage in the policy for living expenses. A lot of times people fail to put this in writing, and when something like this happens, they have not got the means to move nor the finances to buy new personal items like furniture and clothes. That is why this FAQ is so important. Renters, when you speak to your agent, discuss making provision for living expenses in an amount that covers you for up to 12 months. This amount should be a percentage of the total policy value. Another aspect of this renters insurance FAQ is that your agent should work with you to negotiate a premium that is affordable while still offering you complete protection if total loss occurs. Be sure to work this through so you are completely covered.

What if Someone gets Injured? This FAQ is probably the most important renters insurance FAQ because if a person is hurt while on your property, you can be held liable for damages. Do you have any idea how much medical bills can run if someone is seriously injured? If so, you understand that such an ordeal could wipe you out financially if you don't have the right coverage. If you pay no heed to any other part of this FAQ, pay attention to this part because it is the one most commonly overlooked facts and the one most likely to lead to unexpected financial problems. So, add personal liability coverage. It's a simple step that saves you money if a friend gets hurt during a visit.

How Much Should I Expect to Spend? Premiums on these policies vary. But, you'll probably spend about $200 a year. When you figure it in terms of monthly premiums, this is an incredibly good rate for the protection and peace of mind you get. Whether you're in a small flat or a big condominium, you need to protect yourself. If you remember nothing else from this renters insurance FAQ, remember that your premium each month is about the amount it would cost for two tickets to the movies. Use this helpful renters insurance resource and FAQ guide as the first step toward getting the right coverage today.