Everyone knows the importance of homeowners insurance; however, people often overlook the necessity of renter’s insurance. If tragedy occurs, it will not discriminate between rented structures and an owned house. Those who do not own their home (and thus do not have homeowners insurance) will lose just as much if the worst were to happen. Many renters incorrectly believe they will be covered in the face of disaster by their landlord’s insurance. However, the insurance a landowner carries on the property covers just that – his property. Damages to the building and surrounding area will be covered under their policy; renters are responsible for any damage that could befall their personal belongings in the home. This is especially true in the state of Florida, where the weather can pose a serious threat to your rented home. Fortunately, Florida renters insurance will safeguard your valuables in case of the unexpected.
Here are some things you may not have known about Florida renters insurance.
Calculating your possession’s value
When your home is covered by renters insurance, your possessions will need to be appraised (even if only by you) and organized. Make sure to tell your renters insurance agent about all of the valuable items you own and their dollar value.
An important thing to consider when choosing a Florida renters insurance company
is rather that company offers an “actual cash value” or a “replacement cost coverage” system for your possessions. As you could probably guess, this means your valuables will be covered if they are stolen or damaged in an accident. The theory behind an actual cash value system is that your renter’s insurance company will pay for what your items are worth at the time of their loss. This means an item you paid $100 for a year ago, may only be worth $40 now – in an actual cash value system you would receive $40. However, a replacement cost coverage takes into account that original price. To buy another of those items that cost $100 a year ago, will still probably cost you $100 today. In a replacement cost coverage system, you would receive $100 for that lost item.
Obviously, between the two a replacement cost coverage plan offers the most protection, however these will come with higher premiums. This is a choice about Florida renters insurance that will have to be made by the renter.
Keeping your premium low
Determining what your premiums will be is nearly impossible. There are far too many factors including your insurance policy itself, where you live, and your deductible. Some renter’s insurance companies will even raise premiums based on the type of pet the renter has. Large breeds tend to attract higher premiums.
However, you can help to shrink your renter’s insurance bill considerably by simply making a few changes. For one, volunteer for a higher deductible, paying more up front and then less monthly.
Furthermore, most agencies will offer a discount to renters who go out of their way to lower the risks in a home. This means making sure all of your smoke detectors are working appropriately, you have a sturdy burglar alarm and that you keep your fire extinguishers up to date and stocked.
Either way, the safest and most responsible step a renter can take is to purchase renters insurance. This way, no matter what the worst case scenario is, you can know you and your possessions are covered.