Many people assume that they don't need insurance if they don't own the building or house in which they live. But you should know that if you rent an apartment or home, your possessions are typically not covered by the building or home owner's insurance purchased by your landlord.
Most renter's insurance policies cover things like fire, theft, vandalism and other events that could damage your personal belongings. Like home owner's insurance, however, renter's insurance typically does not cover some natural disasters such as floods and earthquakes. It is important to read your renter's insurance policy carefully to determine what type of coverage you have.
Generally, renter's insurance covers the replacement of personal belongings up to a specified amount detailed by the policy, usually somewhere between $20,000 and $50,000. The two most common types of renter's insurance policies pay for replacement or actual cash value of damaged items. Most people favor the replacement policy, as it replaces your items lost based upon their equal replacement costs in today's market. Actual cash value policies only pay the actual value of the item. For example, almost every owns some type of home computer, whether it is a laptop or desktop. If the computer was more than a year old, to replace it would cost more than it's actual cash value, as computers depreciate rapidly. It is important to read your policy very closely when purchasing renter's insurance in order to determine what type of policy you will have and what type of payment system is referenced in that particular policy.
Some insurance companies allow cost deductions on renter's insurance if some type of protective device such as a smoke alarm, sprinkler or other warning system is in use. Ask your landlord what kind of devices, if any, are being used to protect your home.
If your property has been damaged and your renter's insurance company is wrongfully denying coverage, you should seek the advice of an attorney experienced in insurance claims denial. The attorneys at Tatlow, Gump, Faiella & Wheelan, LLC have successfully handled many disputed insurance claims. Contact us today for a free initial consultation to see if we can help you.
