A recent market survey conducted by InsuranceQuotes.com says that majority of US citizens who rent either a home or a condo, don’t avail renter’s insurance. One of the prime reasons behind this is that most people believe that their landlords’ coverage are going to protect them too, which is absolutely false. Some tenants avoid getting a renter’s insurance since they foster the notion within themselves that renter’s insurance is an expensive deal.

Technically, any home insurance policy purchased by a landlord would cover only the structure and the landlord’s possessions, and not that of the renter’s. Even if a building has state-of-the-art architecture and enhanced security features, a fire can break out anytime. Without a renter’s insurance a tenant has to bear for the damages on his own. However, the good news for the renters is that this kind of insurance is quite inexpensive.

According to the National Association of Insurance Commissioners (NAIC), the average annual cost of renter’s insurance is less than $200 per year. So it stands that you just pay $15 each month and get coverage against losses from fire or smoke, theft, vandalism, lightning, explosion, storm and water-damage (excluding damages due to floods). Apart from these, renter’s insurance can also help you avoid legal hassles and costs in case someone gets injured in your place and the person take you to court. The main reason for renter’s insurance being low-priced is unlike HO insurance it just covers belongings and not a dwelling.

Before you choose any policy, you should shop around for the best deal based on the amount of coverage you require. Based on the value of your belongings you wish to cover, you could either get a replacement-cost policy, which would reimburse to replace your possessions up to the policy’s limit, or cash-value policy, which would pay only the value of the items at the time when stolen or damaged.

If you have expensive jewelry, collectibles or art pieces, it’s better to add a floater to your basic renter’s policy to get more coverage since standard policies offer limited coverage. However, you would require receipts or appraisals for objects to be covered by floater. However, if you see that you have fair chances of getting involved in a lawsuit, you should raise the standard liability coverage or get a separate umbrella policy.

While shopping, shop around and get quotes from different providers so that you can tally. Also ask for discounts. Some insurance companies offer reduced premiums if you have burglar alarm, smoke detector, or automatic sprinklers installed in your place. Some also offer discounts if you already have policies with them. So make sure you ask before you purchase.

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