Do I Need Renter’s Insurance?

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With the housing market the way it is many people are turning to renting their next home instead of purchasing one. The big question on every renter’s mind is, “do I need renter’s insurance?” Renter’s insurance is a way to protect and insure personal belongings without insuring the structure in which the person lives.

The need for renter’s insurance is an important decision to make. To many people have opted not to carry this type of policy to protect their own belongings. Only to have some catastrophic event destroy all of their things with no way to replace what was lost. The only type of insurance that will replace your personal property is a renter’s insurance policy that you carry for your own things.

Renter’s insurance protects a persons personal property in the event of a loss. A loss is something that a person loses or ends up destroyed. Losses can happen at anytime and any place. When a policy is bought the person purchasing the policy tells the agent how much in monetary value they need the policy to be set for in order to cover their things. The person also chooses a deductible that they retain (what they pay out of pocket) when they buy he policy. One thing to remember is the higher the deductible the lower the premium.

Whether you or a home owner or a renter it is always a good idea to catalog your belongings to be able to prove exactly what things you have. One way to catalog personal belongings is to write out everything you own and take pictures of everything. Another, more easier way is to video tape everything that you own. After everything is cataloged it is advisable to store the record off premises so if there is a lose it can be retrieved easily.