Let?s face it; the word insurance tends to make people feel bored and fidgety. Most of us do not like the word and would probably do anything to avoid it if we could. We live in a world where there seems to be insurance for just about everything and in some cases it is required by law. This may be why if we are a renter, we completely overlook renters insurance. This may not be a good idea. Many people tend to think the renter already has insurance covering the property. This may or may not be the case. In any case getting ones own insurance is never a bad idea.
Even if your landlord has insurance, it will in most cases only cover physical damage to the building. After that the renter is left to him or her self. If there are any natural disasters or theft done to the building then the landlord may not be covered. By getting renters insurance it will cover any sort of accident or injury that may happen to you or a visitor. In some situations it will also cover loss of residence for any reason. In most cases this type of insurance is relatively cheap.
Generally there are 2 different types of renters insurance. They are, actual cash value and replacement cost. Actual cash value will cover the depreciated value of any goods that are damaged or stolen. Naturally this means you will get paid less than the item was bought for. This may not sound like such a great deal but on the bright side it is the cheaper of the 2. Replacement insurance on the other hand will give a full refund on your lost or damaged possessions. On the down side the premiums will be higher.
No matter which one you choose, the good news is that renters insurance is cheap. It should not cost more than a few hundred dollars a year. If you take into consideration the coverage you are getting it is a very good deal. Most people tend to think of it as something too expensive to get. This may be why many people do not bother getting it.