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Pam's Insurance Site

When I bought my first house, I was already going into a lot of debt. I didn't have the money to seriously insure it, so I bought only the bare minimum without consulting an insurance professional. That was a big mistake on my part. It could have turned out alright. That is, if my house hadn't been in the path of a huge storm. Huge gale winds knocked a tree down straight through my roof. My house was practically destroyed, and my minimal policy didn't cover nearly enough. I spent years and years trying to get myself out of that financial mess. Since then, I have always been very cautious in learning about insurance and talking to the real professionals.

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Top Things To Know When Purchasing Renter's Insurance

The average cost of a renter's insurance policy is typically about $17 per month, and that is one of the key reasons you should purchase a policy if you are renting an apartment. Having this type of coverage is not usually mandatory when you rent an apartment or any type of rental property, but it is still a good type of insurance to purchase. As you look for a policy to buy, here are several things you should know about renter's insurance.

It Is Not Designed to Cover Problems with the Apartment

The first thing to know is that when you purchase renter's insurance, this policy is not designed to cover the actual apartment. In other words, if a fire occurs in the building and damages your unit, it will not be your insurance that covers the costs of repairs. Instead, renter's insurance is designed only to cover the things you own that you have in the unit. It is also designed to offer liability coverage to you in case someone sues you for an accident while in your apartment. It will also generally cover the costs of having to move out of the apartment for a while if the apartment building is not livable. These are the main things renter's insurance is for, and for as cheap as it is, it is a good idea to have it just in case.

What to Look For in a Policy

There are two main things to look for in a renter's insurance policy. The first thing is the coverage. Will the coverage that you have protect everything you own? This is a question to ask the agent you are working with, and you might find out that it does not. For example, if you own three expensive guitars that you keep in the apartment, you might have to add a rider to cover these. If you do not, the insurance company would not replace them for you if they were damaged in a fire or in any other type of situation.

Secondly, you should find out what type of method the insurance company uses to calculate your losses, and there are two main types. Generally, the preferred type is called replacement coverage, which provides you with enough compensation to replace everything you own. The other option is called actual cash value (ACV), which provides coverage on the basis of the actual value of your items. This method results in lower compensation, as it factors in the depreciation of your things.

For more information, contact a company like Woodmansee Insurance Inc.