Renters Insurance Stripped

By Author: Norris Rios
Total Articles: 572
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When it comes to the wondrous but often inconceivable world of insurance, where the sky is red, orange, purple or green, people are often intimidated and down right confused.

Maybe it's because black and white isn't part of the insurance aura? Or is it that we are just too lazy to try and understand what insurance is all about? Either way, the lingo itself can be very intimidating. Big words intertwined with long sentences are very scary, especially to the average person.

The funny thing is, that although there are oodles of variance in insurance products, the basic concepts really are quite lucid. If you take a few moments to let your pre-determined thoughts about the complexity of insurance go and learn about it from the start, like Insurance 101, you will realize that it doesn't have to be so confusing.

That said, renters insurance is in the middle of the mix. Actually it is often forgotten. People don't really 'think' they need renters insurance. Most believe the landlord's policy will cover them, should an unexpected accident occur. Say like a fire, theft, flood or other natural disaster.

This ...
... can be a very costly notion, in that most home insurance policies will not cover the content of a tenant, they only cover the structure of the building. Unfortunately many people have lost everything because of this fallacy. Sad, but true.

Another misconception is that renters insurance is inflated. Where in fact, renters insurance is rather affordable. A simple insurance quote will back this up. It's important for you to make sure your possessions are protected and renters insurance can do this for you.

With that said, it may well be the mindset of people that causes issue. You're crazy to think that people go out to buy insurance thinking they are going to end up making a claim. The opposite is true. We believe that we are doing the right thing buying renters insurance, but will never ever have to use it. With that in mind, we opt for the cheapest coverage possible and call it a day.

This one just might come back to bite you in the you-know-what! There are many different policy variations and it's important for you to understand which one suits you and why. There are limits for the money that can be given in every category and often a policy will have certain exclusions. For example if you live in an area prone to flooding, that will be an exclusion in your policy. You will be left out in the cold if your house floods and you lose everything. It doesn't matter how much you are paying for renters insurance or all the plump riders you've got, if flooding isn't in it, your policy is useless.

Have you ever heard of Actual Cash Value (ACV) or Replacement Cost Value (RCV)? They are examples of simple word substitution, that have huge differences. A policy with ACV will replace your lost items with a brand new replacement. Doesn't matter if your television was ten years old, as you will get a brand new one. It costs you nothing extra out of your pocket.

If however you have a RCV clause in your policy, your item will be replaced at the value it is worth. In other words, if you strippers pole was fifteen years old, your insurance company would do a little research and give you the value of your pole fifteen years ago. Well you can blame it on inflation, but it's going to cost you a lot more to buy that pole today and that is going to have to come out of your pocket. Can you imagine having to do that with hundreds of items? The amount of money you will need to get everything back will be astronomical. You will either have to downgrade in what you replace or come up with the extra cash somehow. Again, you were trying to do the right thing getting renters insurance, but it's really only working at about half speed.

Rather simple when it's actually explained, but ignoring or not bothering, when it comes to rental insurance, can only cause pain. Make sure you get a quote and invest in a piece of mind. You won't be sorry you did.