Moving into a new apartment can be an exciting endeavor. You will have the opportunity to create a new living space, meet new neighbors, and explore a new neighborhood. It's important that you take the time to ensure that your assets will be protected while you reside in your new apartment. Renters insurance is a valuable product that can help prevent significant loss in the event of an accident. Most renters can benefit from a renters insurance policy, but it is helpful to know whether or not you need renters insurance before you move into your new apartment home.
PROPERTY INSURANCE COVERAGE
Your property manager will have an insurance policy in place to protect the structural integrity of your new apartment building. It's important that you ask about the coverage of this property insurance policy so that you can determine if supplemental insurance is required for full protection.
Most property insurance policies will cover damage to the structure of a building caused by severe weather or natural disaster. However, structural damage caused by tenants is typically not covered under a management company's insurance policy. This means that if you flood your bathroom and damage your neighbor's property, you will be solely responsible for the costs.
A renters insurance policy will help protect you against financial ruin in the event an accident that causes structural damage to your apartment does occur.
POSSESSION VALUE
Another factor that should be taken into consideration when evaluating renters insurance policies is the value of your possessions. One of the primary benefits that a renters insurance policy offers is financial compensation if your belongings are stolen or damaged.
If you have new furniture, valuable jewelry, or a lot of high-end electronics in your apartment home, you will want to protect these items with a valid renters insurance policy. Look for a policy that provides replacement cost coverage (RCC) rather than actual cash value (ACV) coverage.
RCC coverage ensures that you will receive the current market value of stolen or damaged items when filing a claim. ACV policies will factor in depreciation before processing a payout.
RENTAL REQUIREMENTS
Before you sign the lease for your new apartment, be sure to ask the property manager is renters insurance is required. Many management companies require tenants to maintain current renters insurance policies for the duration of their leases. Some management companies will even ask that they are listed as an interested party on these insurance policies so that they will be notified if you cancel the policy prematurely.
Tenants with renters insurance help protect management companies from financial damages should carelessness or accident on the part of a tenant cause structural damage to the apartment building.
Because renters insurance policies protect both tenants and landlords, many management companies will offer the option to pay for a policy with your monthly rent. Be sure that you evaluate the coverage limits of these policies, and be prepared to seek out your own renters insurance if you need additional coverage to protect your belongings.
There are many great renters insurance options available to prospective tenants on the market today. No matter what you own or how much your items are worth, the minimal monthly premiums associated with renters insurance products make these policies a worthwhile investment. You will enjoy maximum protection against liability and loss of use, which can help you preserve your financial assets in a crisis.
If you are looking for a new apartment to call home, contact Montgomery Realtors. We can help you find the apartment that will suit your needs and accommodate your lifestyle without breaking the bank.
