By John Voket
I need a bunch of you – specifically you renters – to take a moment and consider an important piece of advice about your stuff. If you love it, then make an extra effort to protect it.
Did you know the majority of homeowners buy insurance, but just one in three college-aged renters insures their belongings? Even more shocking: at least half of all renters fail to buy any insurance protection for their possessions.
Way too many consumers are under the mistaken impression that their landlord’s policy will cover their losses, according to the Connecticut Better Business Bureau. BBB says renter’s insurance generally covers property damage or loss caused by theft, fire, vandalism or storms. In addition, most policies include liability coverage, which protects a tenant if someone gets hurt when visiting their home or apartment.
The cost of renter’s insurance is usually lower than homeowner’s insurance because it covers only personal property and liability, not the structure. The amount of the deductible can also affect the cost of premiums.
Two types of renter’s insurance coverage are available:
- Actual cash value insurance pays to replace items up to the policy’s limits, minus a deduction for depreciation.
- Replacement cost insurance pays the actual cost of replacing your possessions, regardless of depreciation, up to the limits on the policy.
Consider the value of your possessions versus the cost of insurance - even a college student can have property worth several thousand dollars, such as computers, electronics, televisions, furniture, jewelry or small appliances.
When seeking a renter’s insurance quote:
- Determine if you have specific items of high value, you also may need a rider to cover those items. This means you'll need to list these items separately for your insurance policy.
- Ask what deductibles apply to the policy.
- Find out whether the policy will cover living costs if you are unable to occupy your current apartment or home while it is being repaired.
- Inquire about exclusions, such as types of property that would not be covered.
- Ask the insurer if they give discounts for burglar alarms, fire extinguishers, sprinkler systems or deadbolts on exterior doors.
- If you are switching insurers, be sure that the new policy is in effect before dropping the old one.
- As with any insurance product, BBB advises consumers to get estimates from several companies before buying a policy.
Source: www.bbb.org.
If you are looking for renter's insurance I am happy to provide you with a list of my trusted service providers.
If you are thinking of buying or selling an home in Maryland give me a call at 410-292-0100 or start your search here and we'll talk about the market conditions and what your home could possibly be worth in today's market place if you are thinking of selling. If you are considering buying a home, there is no better time than now to buy. The tax savings and wealth building alone is worth the plunge into todays market. Century 21 New Millennium is part of the largest nationwide relocation company and can assist with your move here in Maryland or anywhere in the United States or abroad. Ask me how.
In keeping with saluting our heroes, during 2012 I am waving flat fees for active duty military, retired military and the families of fallen military, as well as policemen, firemen and emt's. If you enter into a contract by the New Year's eve I will waive the flat fee at settlement. This is a $395 savings. If you are thinking about buying or selling a home give me a call and receive full service real estate assistance from an experienced agent. Our office is open 7 days a week and we can be reached at 410-730-8888 or I can be reached directly at 410-292-0100.
June Piper-Brandon ~ Associate Broker, CDPE, CIAS, ePro
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