Juliet Risdon
Juliet Risdon is a Director of JML Property and a property investor.
Having established the company in 1994, JML Property offers Investment Property & Homes. It specializes in managing properties for owners and investors, and providing attractive and comfortable homes for tenants.
Many renters don’t stop to think about what happens if there is a fire, a flood, or someone breaks in and steals their new TV or stereo.
As a tenant, you are responsible for the contents of the apartment.
Whilst your landlord has insurance that covers the actual building, that coverage does not include your personal property or liability for injuries which occur in the space you rent.
If a fire should destroy or damage your home, your landlord’s insurance will cover the re-build of the structure.
It won’t cover damage or loss of your belongings. Neither will it provide for the cost of temporary housing for you and your family.
You may think you don’t own enough personal property to make the cost of insurance worthwhile, but that’s usually a miscalculation.
If you sit down and add up the cost of REPLACING everything you own, you may be in for a big surprise.
Consider what you have invested in such things as:
Furniture and accessories
Electronics like TV, stereo, computers
Small appliances like microwaves, toaster ovens, etc.
Clothing
Art work like paintings or prints
Dishes, silverware and cookware
Sporting equipment
Books
Jewelry
Could you afford to replace all of these things?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
The dollar amount of your coverage
The amount of deductibles (the portion paid by the tenant)
Whether you choose to be reimbursed for Actual Cash Value or Replacement Costs (more about that in a minute)
The number of previous claims made, not only by you, but by others living in the same area.
Let’s explore the difference between Actual Cash Value (ACV) and Replacement Costs.
ACV is the value of your property at the time a loss takes place.
For example, if your television set is five years old, it’s valued at much less than if it were brand new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you’re paid whatever it costs to go out and buy a new TV with similar features.
Insuring for replacement cost raises the amount of your premium so it’s a good idea to get quotes for both ACV and Replacement Cost policies. Then you can decide which option fits your needs and budget.
Another thing to keep in mind is that jewelry and valuable collections are usually covered under a separate policy or “rider”.
If you own these kinds of items, be sure to tell your insurance agent. You don’t want to find out after disaster strikes that they aren’t covered or that they aren’t covered for their true value.
To check on rental insurance prices, we suggest that you consult your bank. They are usually able to recommend an insurance company and some of them even offer insurance products directly.
Rental insurance may be worth the investment just for the peace of mind it offers you.
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info@JMLProperty.com
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