HOW TO GET RENTERS INSURANCE

The first thing to do to get renters insurance is to talk with your MAX agent. You will fill out an application and answer questions about the place you're renting. One thing to do in advance of filling out the application is an inventory of the contents inside your rental.

After determining the value of your items and how much coverage you will need, you usually have a choice between a Replacement Cost (RC) policy and an Actual Cash Value (ACV) policy. Replacement cost is the most popular form of coverage and is the payment from the insurer based on today's cost of the damaged or stolen property. Remember, with RC coverage you must present a receipt for the replacement item in order to get reimbursed.

Actual cash value is equal to the replacement cost minus any depreciation. This market value is the dollar amount you would receive if you sold the lost or damaged item in the marketplace. You may prefer ACV over RC when you don't plan to replace the items destroyed and want the reimbursement quicker.

Personal Liability

Now that you have insurance to cover the belongings in your rental, another highly recommended coverage is personal liability insurance. As said before, your landlord is only responsible for the building and is not responsible for any occurrences inside your rental. Liability insurance will protect you in cases of injury to another person or damage to another person's property. Liability insurance is not exclusive to renters insurance, it will cover you anywhere you go. For instance, if you knock over a display of canned pears in a grocery store and each can is ruined, your liability insurance will cover the damage.