Do you rent a home or a flat? Chances are, if you are a renter, all of the furnishings and belongings in your home or flat belong to you. Generally, when a flat or home is rented furnished, the owner will have insurance coverage in place for the furnishings that are included with the rental. The stationary fixtures, such as flooring, cabinetry and appliances will be covered under the policy of the owner. Any items you bring into the home or flat will need to be covered under a separate insurance policy that you’ve secured on your own. This policy will be separate from the owner’s policy. All of your furnishings, entire wardrobe and jewellery will need to be covered under this policy. These insurance policies are referred to as renter’s insurance. If you’ve spent years accumulating furnishings and apparel, the cost of a renter’s insurance policy will be nominal in comparison.
The same reason you’ve insured your car or truck, your possessions need to be insured as well. Unlike auto insurance, renter’s insurance is not required. It’s a very expensive mistake to neglect to carry a policy just because it isn’t required. Do you have enough funds to replace all of the items in your flat or home overnight should there be a fire, flood or theft? Chances are, you don’t. There are two types of renter’s insurance coverage. One replaces the items on what they would be worth in today’s market. The second option, and more preferred, is a policy that replaces items based on replacement value regardless of age. This is especially important when insuring antiques. Add on policies for renters are also available. These are often referred to as riders. Specific insurance policies for items such as jewelry, furs, art work and other valuables are also available for an additional premium. Even though the cost of renters insurance is nominal, most insurance carriers will offer the option to spread the annual premium payments over three or four payments. Some will also accommodates requests for monthly payments, although this usually comes with an additional fee.
Follow these suggestions to protect your furnishings and possessions from unexpected catastrophes.