Love the Way You Lie: Renter’s Insurance Should Be a Necessity for Apartment Dwellers

Megan Fox stars in the music video for Eminem’s hit song “Love the Way You Lie” featuring Rihanna. The song has won critical acclaim for both Eminem and Rihanna, who recently performed their hit on stage at the MTV Video Music Award Show. Megan Fox is first seen in the video with flames dancing on the palms of her hands. Then throughout the music video the house is seen engulfed in flames while Eminem and Rihanna sing in front of it. For renters that are wise enough to secure renters’ insurance, if there is ever a fire that affects  apartments in Lewsiville, or any other area, they will know that their belongings will be replaced.

There are a lot of misconceptions and lies being spread about renter’s insurance for apartments around the country. Despite what many renters believe and say, renter’s insurance should be just as much of a necessity as electricity and running water. Here are some truths about renter’s insurance and a basic guide understanding how it works

Lie #1: Renter’s insurance is too expensive

Contrary to what you have heard, renter’s insurance doesn’t have to be expensive. In fact, you may not realize how much it would cost you to replace all of your personal effects in the event of an apartment fire, but I assure you renter’s insurance is a bargain by comparison. In addition, there are many ways to take advantage of discounts in order to lower your premium. If you currently have auto insurance, you should ask your agent to quote you the price for adding $30,000 to $35,000 worth of renter’s insurance. By going through the same insurance company, there is usually a multi-coverage and/or multi-policy discount that can lower your premium. Also, just as with any other type of insurance you should get several quotes to compare. Be sure you are comparing apples to apples in the policy details. Also, ask your apartment management if they have a preferred vendor that may offer additional discounts for tenants.

Lie #2: My apartment community’s insurance will cover me

An apartment complex is covered by their insurance. Their insurance covers the building, the structure itself, not the property of the tenants inside. In the event of a flood or a fire, you will not be able to file a claim for any personal losses that you incur with the properties insurance company. In fact, some properties require that renters obtain and maintain their own renter’s insurance policy. Not only will your personal effects, such as furniture, electronics, and clothing, not be covered by the property’s insurance, but you will also not have any options for recovering additional living expenses in the event that you’re displaced if your apartment because unlivable. This means that you will not have insurance to assist you in paying to live somewhere else until you’re able to move back into your home.

Basics of Renter’s Insurance

The basic renter’s insurance covers losses of personal property due to any of the following reasons:

• Fire or lightning

• Windstorm or hail

• Explosion

• Riot or civil commotion

• Aircraft

• Vehicles

• Smoke

• Vandalism or malicious mischief

• Theft

• Damage by glass or other safety material from a building

• Volcanic eruption

• Falling objects

• Ice, snow, or sleet (weight of)

• Water-related damage from home utility

• Electrical surge damage

In addition to the standard coverage, you can obtain a rider to cover flood or earthquake damage. You will also want to know the difference for a policy that covers actual cash value (ACV) and one that covers replacement cost value (RCV). RCV will pay provide a cash equivalent payment to your for damaged items for what it will cost to replace that item. ACV will only provide payment for what the item that needs to be replaced was worth, considering any depreciation since you purchased it. RCV will require higher premiums, but will pay out more for a claim. Also, be sure to notify your insurance company of any extraordinarily valuable items that you have in your home in order to make sure that you will be able to recover the full value if there was any damage to that item.