If you’re getting ready to rent an apartment, you’ve probably got a long list of things to do before you move. Along with packing and signing all the right paperwork, you’ll want to add “get renters insurance” to your to-do list.
Yes, your landlord has an insurance policy, but it most likely won’t cover your belongings in the event of a theft or fire. Here are six things to consider when you’re ready to purchase a renters policy:
Estimate how much your stuff is worth
It’s important to have a home inventory detailing the value of your belongings. Completing this checklist (and updating it when you make new purchases) means you’ll have a hard copy to hand to your Agent if you ever need to.
Decide between actual cash value and replacement cost
Actual cash value takes depreciation into account when calculating the worth of your belongings. So, if you bought a new laptop for $1,000 five years ago, you’ll only be reimbursed for what the laptop is worth in today’s dollars minus depreciation. Say it’s only worth $500 today, then that’s all you’d get.
Replacement cost is a better option: it reimburses you for the original value of the item (or one of similar kind and quality at today’s replacement cost, if the item is no longer available), and costs only slightly more than actual cash value.
Consider earthquakes and other disasters
Depending on where you live, your ERIE Agent can tell you more about adding these extra coverages to your renters insurance policy.
Choose a deductible
Your deductible is the amount you pay before your insurance kicks in. The deductible you pick can influence your premium. For example, choosing a smaller deductible can mean paying more in monthly premiums, while a larger deductible can mean lower monthly premiums.
Think about extra protection for any valuables
For certain categories of personal property, ERIE offers up to $3,000 worth of coverage for any one item that’s stolen. If you own pricey items like jewelry, art, furs or silverware, you’ll probably want to add a personal valuables endorsement to your renters insurance policy to make sure they’re fully covered.
Protection for wherever you call home
Finally, remember that your ERIE Agent is always there to help you get the right renters insurance policy at the right price.
What’s even better? Purchasing both a renters and an auto policy can qualify you for a multi-policy discount. In some cases, the discount actually pays for the renters policy.
