4 Things to Think About When Choosing Renters Insurance
Many people often feel confused when thinking of getting a renters insurance policy. It’s definitely a need but it’s a decision where various factors need to be considered before it is made. Do you know how to choose the right insurance?
What You Should Consider Before Settling on Renters Insurance
You might think it’s not necessary to have insurance on a property you don’t actually own, but the same reason why you’re shying away from getting this policy is the reason why you need to get it. Any damages that happen to this property you’re living in become your responsibility and if there’s no insurance, the money will have to come out of somewhere else, usually your pocket. This is not a decision to be made lightly. Before you purchase your renters policy, make sure you go through the following steps.
Dollar Amount the Policy Will Provide
A dollar amount will be set on all of your possessions as a whole, and that is how much money will be covered by the insurance policy you get. How much coverage you decide to purchase is directly proportional to the price you’ll pay, so, the more coverage, the higher the price.
Replacement Cost or ACV
The actual cash value or ACV is the market value of whatever you’re insuring and it’s equal to replacement cost minus depreciation. It’s most common for basic policies to pay you ACV, which is basically, the value of the asset at the time of loss. Whereas if you choose replacement cost, the policy will replace exactly what you lost.
Liability coverages are not subject to the deductible, every other coverage is. When choosing a renters insurance policy, think about the cost and also about how much money you are willing or can easily pay out of your pocket before your insurance is activated.
Past Claims and Current Location
The area you live in might influence the cost of your policy, as will any previous claims that might have been filed from that location and the neighboring areas.
On average, renters insurance is a rather reasonably priced type of policy. It’s all about taking time to review things in detail before you make a decision and end up stuck with a policy that doesn’t fit your needs. Our independent agents at AAI Central Agency in Colorado, are here to guide you through the process and offer you options that best fit what you’re looking for. If you’ve been putting off getting renters insurance, this is the time to start. Give us a call.