| Hi Taylor
- I'm planning to buy a house soon but not sure exactly when it'll
happen. In the meantime, is renters insurance worth it? Any tips on
what I should look for? - Skylar
Hi Skylar - If you live in a building, you should have some
type of insurance protecting your possessions and peace of mind. Renters
insurance is fairly inexpensive and the alternative - losing precious,
valuable items - can cost a whole lot. As far as what to look for,
here are three factors to think about.
type. You'll have to choose between actual cash value and
replacement value, and this can significantly affect the cost
of your policy. If keeping the cost low is your top priority,
go with cash value and you'll get reimbursed for lost items with
depreciation and usage factored in. Your TVs and couches won't
get you as much as what you paid for them, but you'll definitely
get something. If you pay a little more on your premium and go
with replacement value, your possessions get replaced with new
items at an equivalent market price. The choice depends on what
you own and what's available in your budget. I'd probably tend
toward cash value to avoid paying too much each month, but you
have to think about what matters to you and the risks you might
be susceptible to.
2. Option to bundle. If you already have car insurance,
get on the horn with your current insurance agent and see what
they can offer. Insurers love to bundle for existing clients and
you can usually get decent coverage at a nominal cost. Start with
your current auto or life insurance provider and then see what
other companies have to offer. This is probably the best place
to start, even if it isn't the final solution.
3. Know what's covered. Renters insurance can leave people
in the lurch when they don't read the fine print. If you live
in Houston and your insurance won't cover damage from flooding,
that's a big hole in your plan. In some cases you have to buy
separate policies for specific natural disasters, so you can't
just assume your policy covers against weather patterns and events
common to your area. You might have to pay more or find a company
with a more inclusive policy. It would be nice if insurance was
more straightforward, but it's unfortunately up to you to do the
work and find the right coverage.
| You never know
when you'll need it, and that means you need to be covered at all
times. Change your policy once you finally buy a house and take advantage
of renters insurance now. Good luck, Skylar!
| © Taylor
Kovar November 9, 2018
More "Go Far With Kovar"
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