26 Mar 2020
apartment building

Here are some things you will have to consider with your renters insurance.

If you are renting a home or apartment, then you know that you need renters insurance to protect your belongings and personal liability.  However, before you simply secure the cheapest policy available, there are some things you need to think about.  Here are some of the decisions you need to consider.

  • Should I get cash value or replacement cost coverage?

Actual cash value refers to the cost if an item with depreciation taken into account.  Replacement cost refers to the actual purchase value of an item without depreciation.  When you secure renters insurance, you have the option to secure coverage for your belongings’ cash value or replacement cost value.  Please note that, because replacement cost policies offer more coverage, they will be more expensive than their cash value counterparts.

  • How high of a deductible should I set?

When you secure renters insurance, you will need to select a deductible.  A deductible is the amount of money that you agree to pay towards a claim before you can access your insurance coverage.  When you select a higher deductible, insurers reward you by lowering your premiums.  While it may be tempting to set the highest deductible possible, do not set your deductible higher than you can actually afford to pay.  Setting your deductible too high could prevent you from securing coverage when you need it the most.

  • What’s the worst that can happen?

Many renters rely on basic policies as a way to save money.  However, if disaster does strike and you do not have sufficient coverage, then you will be left paying for losses all on your own.  To ensure that you are ready for anything, you should imagine the worst-case scenario and ensure that you have the right renters insurance to deal with this situation.  While this might mean securing flood, earthquake, or other supplemental coverages, it’s worth it to be completely protected.

These are some of the things you should consider when buying renters insurance.  Do you need help with your renters coverage?  If so, then contact the experts at Patterson & Associates in Richardson, Texas.  Our dedicated team is eager to get you the coverage that you need today.