While not all property management companies instruct their tenants to get renter’s insurance, Hunziker requires it and here’s why: renter’s insurance benefits you by protecting your personal belongings in case of theft, fire, vandalism or a natural disaster. Now let’s talk in more detail about how renter’s insurance can benefit you.
When you actually think about how many valuable personal belongings you own, the cost can add up fairly quickly. Laptop computers, flat-screen televisions, iPad’s, and other personal electronics can be prime targets for theft. Forgetting to lock your door just one time could put you at risk for a break in. If you apply for full replacement cost value insurance then your insurance company will pay the cost to replace your personal items that were stolen.
Replacement cost and actual cash value are two different types of rental insurance coverage. Actual cash value coverage will reimburse you for the cost of your items and belongings at the time of the claim, minus your deductible. It’s important to account for depreciation when considering actual cash value coverage. For example, if a flat-screen television was stolen from your apartment 3 years after the television was purchased, you would be reimbursed for the current value of the television.
If you choose replacement cost coverage you will be reimbursed for the full price of the new television, after you purchase the new tv and submit your receipt to your insurance company. The up-front cost is greater for replacement cost coverage, but your compensation for your belongings is much more accurate.
The monetary worth of personal possessions aside from electronics such as furniture, clothing, textbooks, can leave you financially devastated if all were lost to a natural disaster or fire. Your property management company is only liable for the building, not the belongings inside of it. A renter’s insurance policy will save you from having to repurchase all of your personal belongings.
If a fire or natural disaster were to render your rental unit unlivable, a renter’s insurance policy will help pay for your temporary living expenses. This could include hotel bills, eating expenses and other living expenses normally incurred.
Most premiums for renter’s insurance averages between $15-$40 per month. Cost can depend on the location, size of unit, and how many personal possessions you have. A majority of renter’s insurance providers offer a variety of payment plans, allowing you to make monthly, quarterly, semi-annual, or annual payments. Ask your provider about payment plans, and be sure to inquire about any fees for installment payments.
Renters liability insurance protects the renter from paying for an accident that causes loss or damage to an individual or to the property. Discuss with your insurance agent if renter’s liability insurance is a part of your policy.
Insurance companies offer a variety of different coverage options for renters. Spend time reviewing your renter’s insurance policy and be sure it’s reflects the value of your belongings and the atmosphere of your rental unit. Feel free to contact Hunziker Property Management for their policies on renter’s insurance!