Moving into a new apartment is exciting and overwhelming all at once, and this event may require taking some additional steps. One such step is purchasing renters insurance for your new apartment. Renters insurance is a product you can buy from most home insurance companies, and it provides the protection you need as a tenant. If you have never purchased it before, here are some tips to help you buy a renters insurance policy.
Consider Calling Your Auto Insurance Provider
You may want to begin the process by contacting your auto insurance provider. Many auto insurance companies also provide home and renters insurance policies, so you might be able to purchase your policy from the same company you already use. If so, you will receive the benefit of a bundling discount. When you buy more than one policy with the same company, they will often reward you by giving you a discount for having multi policies with them. Taking advantage of discounts is an effective way to lower your costs for insurance.
Make a List of What You Own
Before you call, it might be helpful if you make a list of the things you own. To do this, write a list of the items you own and include the values of each. When you have a list handy, you can tell the agent what you have, and the agent can help you choose a policy amount that will cover everything you own.
Ask About the Differences in ACV vs. Replacement Cost Coverage
While you talk to the agent, ask about the differences in ACV and replacement cost coverage. ACV stands for actual cash value, and it is a method that insurance companies use to determine compensation after a loss. With ACV, your insurance company will compensate you for your losses based on their current values. If you bought a TV five years ago for $500, it might be worth only $100 now. With ACV coverage, you would only receive $100 if you lose the TV to a peril.
Replacement cost coverage provides compensation for the total cost of replacing the item. For the TV, it might cost $800 to replace it today. If so, this is the amount you would receive for compensation after a loss.
You can typically choose either type of coverage, but choosing replacement cost is the best option.
Purchasing a renters insurance policy provides a way for you to have all the protection you need as a tenant. To learn more, call a home insurance agent, like those at Woodmansee Insurance Inc or other places, to get started with the process.
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