Why Do I Need Renter's Insurance?
Many tenants do not realize that their landlord's insurance policy does not cover their belongings, and they often do not fully understand the value of their items and how much it would cost to replace them. Each year in Albany, dozens of families are displaced due to fires, home floods, or other disasters. Without renter's insurance, these households have no way to replace their belongings or pay for their daily living expenses while they try to get back on their feet. Renter's insurance is worth it for the peace of mind.
How Do I Select a Renter's Insurance Policy?
It's a good idea to "shop around" when considering renter's insurance. The following are some questions that you may wish to ask before purchasing a policy:
- Does the insurance policy cover the costs of replacing your items, or their cash value? Replacement value has a higher premium, but is a good option if you own many older items with little cash value that would still need to be replaced.
- Are there any discounts available? Some insurance companies issue discounts for non-smokers, buildings with sprinklers, or units with security systems.
- Do you offer any "bundles" or discounts for holding multiple policies? It may be cheaper to purchase renter's insurance with your car insurance policy, for example.
- What would the monthly premium* be?
- What would the deductible** be?
* Premium: The monthly or annual cost of having an insurance policy.
** Deductible: The amount that the renter would have to pay out of pocket when filing an insurance claim. For example, a tenant may have to pay $500 when filing a claim, and their insurance covers the remaining costs.