To Insure or Not to Insure
The question is valid- to insure or not to insure. There is a large difference in the insurance that owners have on a building that you rent and renters’ insurance. The type of insurance that owners purchase protects their building and property in the event of a disaster. Renters’ insurance protects the tenants’ property. Many renters do not believe that they will need any type of insurance because they do not own that many belongings or that which they own is not extremely valuable. Renters’ insurance protects which ever property the purchaser decides upon. Many policies of this type also protect that property regardless of its location. This means if an expensive piece of jewelry or laptop is stolen on vacation, it will be covered whether it was left at home or taken on vacation with the individual.
Items Covered
Insured items do not necessarily have to be extremely expensive to be covered. Every day living items are often covered in insurance policies as well. These are some examples of insurable possessions.
- Furniture
- Clothing
- Laptop, computer, and/or reader
- Television
- Entertainment or sound system
- Musical instruments
- Sporting equipment
- Tools
- Jewelry
All of these items, as well as others, do have a certain amount of value and would have to be replaced, if stolen or destroyed. Most of the above listed items also serve important purposes. Emergency situations are extremely stressful and it may be easier to allow the insurance company to take care of these matters.
Motels
Another extremely important consideration is where renters will stay in the event of an emergency. In certain situations, it may be the responsibility of the owner of the building to provide a place for the tenant to stay. This is only if the emergency has been found to be the fault of the owner. Not all disasters are the fault of the owner. It could be the result of an accident such as a furnace explosion for which no known cause is found. It could also be the result of a natural disaster such as a tornado or earthquake.
Many insurance companies allows clients to customize insurance policies to a certain extent. This includes a chosen amount of money allotted for the cost of a motel room. It is difficult enough when a disaster strikes, but it is devastating, if the tenant has no safe place to go afterwards.
Other Considerations
You need to consider other things before making a decision- to insure or not to insure. Personal liability insurance is another expense for renters to consider. This covers property damage and personal injury to others, if the tenant is at fault in the situation. Some policies will also cover firearms or any accessories thereof. It is important to shop around and ask many question during the investigation. Determine exactly what is needed and what items should be covered. Consider some of the situations renters’ insurance covers.
- Windstorms
- Fire and smoke damage
- Lightening
- Theft and vandalism
- Flood or accidental water damage
Be sure to inquire exactly which situations are covered. Some policies do not cover certain types of natural disasters or those considered Acts of God. Generally the average cost of renters’ insurance is only about $12 to $15 per month and can lend peace of mind. Many insurance companies offer a discounted rate to individuals who currently hold another policy with that company such as automobile insurance. We think we answer the question- to insure or not to insure.
Apartments downtown Ann Arbor is available for rent with affordable price.
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