Insurance 101: Renters Insurance
July 23rd, 2015 — Martinson Agency LLC — Chaska, MN
Renters insurance is important. However, understanding your renters insurance policy and the coverage it provides is just as important. There are a few coverage options that could end up saving you thousands of dollars in the event of a loss. Make sure that when you purchase a renters insurance policy you know exactly what you’re signing up for!
There are two types of renters insurance policies that you can purchase. The first is Actual Cash Value, often referred to as ACV. In the event of a loss, ACV coverage will consider the depreciation and usage of your items while determining their value. This means that while you will pay a lower premium, you will not receive enough money to go out and purchase that item brand new. The second option is Replacement Cost (RC). Replacement cost coverage, does not consider depreciation or usage when determining the value of your damaged items. In other words, you will receive the amount of money it costs to actually replace your item with a brand new one.
Another form of coverage that can be extremely helpful is “Loss of Use.” This coverage can reimburse you for expenses that arise if you happen to be displaced from your home while it is being repaired. This coverage is often included in your renters policy but is limited to either a specific dollar amount or time frame.
Be sure to keep an inventory list of all your belongings and take pictures of them as well. (NOTE: People often only consider valuable items when making these lists. Don’t forget about simple items that may need to be replaced as well!) Doing this will make your claims process much easier and will also help to get your belongings replaced faster. Also, be aware of the specific limits that your policy may carry. If you are unsure of the limits on your current policy, make it a point to contact your agent as soon as possible.
If you have questions regarding renters insurance or are ready for an insurance quote, give the Martinson Agency in Chaska, MN a call today!
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Phone: (952) 314-4400