Understanding Rented Home Insurance

Many American have been forced to become property renters due to the high foreclosure rate recently. With this change in living arrangements also comes a change in how you should protect your property in the event of loss from fire or theft.

Renter’s Insurance

When you become a renter one of the first things a person should do is to contact their insurance agent and inquire about renters insurance. The type and amount will differ from each individual to be insured and there are different factors that determine what type of coverage a person will need. One thing that is a fact is that if a person rents their home then renters insurance is a must.

Inventory of Personal Items
You will want to do an inventory of all your household belongings including clothes, jewelry, appliances, furniture and other personal item. Taking pictures and storing them on a disc can be a very good idea in the event you may need to make a claim for an item that has been destroyed in a fire or perhaps stolen. The amount and the monetary value of your possessions will determine how much insurance you will want to purchase. Also you will want to be check if in the event of a loss of your property will you be compensated at purchased price or replacement cost.

Insuring Expensive Items
Most insurance companies will also allow you to pay a small extra in premiums to insure expensive items such as jewelry, art or antiques. This is a small price to pay if one of these items would be stolen or destroyed in a fire. Two things rental insurance does not cover is floods and earthquakes. This insurance is separate from homeowners and rental insurance. If you live in an area prone to flooding or earthquakes it will be a good idea to look into the cost of carrying this type of insurance on your possessions as well.