What Does Your Renters Insurance Cover?
Renters insurance, also known as renters' insurance, is a comprehensive insurance policy that offers some of the same advantages of homeowners' insurance - but doesn't include coverage for the structure, or actual dwelling, with the exclusion of minor repairs which a tenant usually makes to the house or structure. Renters are normally renters; they are tenants in more than one apartment or home. Most renters are subject to a lease agreement which assigns the right to use and occupy a home or apartment to a party or parties, and also authorizes that party to remove and dispose of personal belongings in the case of any disagreement between the parties.
A standard renters insurance policy will provide coverage for replacement cost, or 'full replacement cost', which means that your claim will be replaced by the actual cash value of the property. For buildings with wall or ceiling damage, there is usually a limit on the amount of coverage you can have for that damage. In this case, the coverage would be for the repair or replacement cost of your belongings. Read more about insurance at http://www.ehow.com/how_5017067_set-up-insurance-company.html.
You should also inquire with your renters insurance company about whether or not they provide coverage for a loss of or damage to your personal items. Some companies do, in fact, provide coverage in the event that something happens to your expensive jewelry, antique floor rugs, paintings or other personal property. The policy would provide you with a lump sum payment to replace the item, or a credit to buy another similar item. If your things are stolen, your renters insurance company will provide you with a check in the amount you were paying for the stolen item, to cover the difference between the actual cash value and the replacement cost.
The best homeowners insurance companies policies usually don't cover all of your personal property, such as electronics, furniture and antiques. For that kind of protection, you'll probably need to get renter's insurance that specifically mentions electronics, furniture and antiques. If you rent your apartment or house out, you may want to get renter's insurance that includes cleaning and maintenance services. These can be very helpful in the event of an unexpected disaster, such as a fire. A cleaning service can help remove all of the belongings from your home in a hurry, without needing to discard or recycle any of your valuable items.
Renter's insurance does NOT include flood damage, vandalism, theft or accidental damage to your rental property. Your actual cash value or replacement cost coverage will cover those kinds of damages. You should get a specific amount for your replacement cost because you need to factor in the time it will take to renovate your place, as well as the cost of replacing your personal items. In most cases, if you've got a rental property insurance policy, it will also provide coverage for your personal liability, so that if someone gets hurt while visiting your place, you won't have to foot the bill.
You can also get additional earthquake insurance for homeowners coverage to help you replace personal items that are damaged beyond repair. Usually, the policies will offer you up to a certain amount for this kind of loss. The policies will also offer you the choice of getting actual cash value on stolen items or replacement cost on stolen items. It is important to know what your renters insurance cover factors are, because this can help you make sure that you have enough coverage.