Protecting your most valuable investments is one of the smartest financial moves you can make in life. While it may seem practical to purchase insurance for assets such as your home and vehicle, it may not be quite as obvious for a rental property. If you’re unsure whether you need renters insurance, consult the guide below.

Is This Insurance Essential?

You don’t technically need to purchase renters insurance, but your landlord or the property manager may require it. This coverage provides protection for your personal belongings — those items that you have inside your apartment. Landlord’s insurance, by contrast, covers the actual building and any damages to the structure that might occur.

How Does It Work?

You have options where policies are concerned; the one you select will determine your monthly premiums. A replacement cost value (RCV) policy covers the cost of either repairing or replacing the object. For example, if your five-year-old tablet was damaged and you filed a claim for it, your provider would offer a replacement tablet featuring the same specifications as your old model.

By contrast, an actual cash value (ACV) policy would provide you with the object’s current value after taking into account the five-year depreciation.  

What Does It Cover?

At a minimum, your policy covers all of your belongings, including furnishings, clothing, electronics, appliances, and valuables, in the event that they’re damaged in a covered peril, such as fire, vandalism, smoke, lightning, or hail. Most policies also factor in personal liability coverage, which provides legal protection in the event that you’re held liable if a visitor suffers an injury at your apartment.

Medical protection covers any medical expenses that might be incurred if someone is injured, and loss of use covers any expenses that may arise if your apartment is deemed uninhabitable for a covered reason.
 

If you’re seeking reliable renters insurance in Birmingham, AL, trust in the professionals at AiA American Insurance Agency to find the right solution for your needs. Serving the community since 1986, the company offers a variety of policies to ensure that your most valuable investments are always secure. Visit the website to learn more about their products, including auto and general liability insurance, or call (205) 940-9977 to speak with a representative.