Moving into a new apartment is exciting. There are new spaces to explore, neighbors to meet, and a new community to be a part of. With a plethora of apartments for rent in Boulder (or anywhere in Colorado for that matter), adventure awaits. Before settling into your space, however, there is a lot of work to be done; boxes to unpack, pictures to hang, furniture to assemble, and of course, pets to bring into your new apartment rental. One item that should never be forgotten or overlooked is renter’s insurance. If you have little knowledge of what renter’s insurance is, what it does, or even how to get it, worry not; we broke it all down for you below.
What Is Required
It’s becoming commonplace for property managers and landlords to mandate renter’s insurance as part of the lease agreement. Often times, management will want to be listed as an “additional interest” on the policy. This makes sure they’re kept updated of the status of the policy and any claims that are filed. Apartment complexes and rentals will have different policies with regards to renter’s insurance. It is best to check with the landlord or property manager before you move in to determine what they require.
Types Of Coverage
There are two types of renter’s insurance plans you can purchase: Actual Cash Value (ACV) and Replacement Value (RV). What’s the difference? When you have something that’s damaged, ACV will take into account the depreciation and usage of your items. RV insurance will only cover the amount it costs you to go buy a new item today. Typically, RV is more expensive because the insurance company will pay out more if there’s a claim.
Find Out What Your Stuff Is Worth
When it comes to purchasing renter’s insurance, guessing can end up costing you a lot of money and heartache. If you are like most people, it is likely that you have no idea how much your possessions are actually worth. With that said, the average person owns $20K in personal belongings. Consider taking a thorough fact-based inventory of your possessions. This will help you get an accurate quote and cover everything you hold dear.
Know How A Claim Works
Before you need to file a claim you may want to understand how one works. Familiarize yourself with the numbers to call, who you’ll need to speak to immediately, and exactly what information you’ll need so that you can have that information all in one spot, readily available for you to use.
What Is Covered
Renter’s insurance covers more than just stolen property; it can also provide coverage for damage and loss caused by fire, lightning, smoke, hail, and vandalism. It can even cover living expenses if you have to be relocated during repairs.
What Isn’t Covered
Renter’s insurance does not typically cover natural disasters or events such as flooding or earthquakes. Certain pets are not covered, either, for any damage or injury they may cause in the apartment community. It is important to note that extra coverage may need to be purchased for items such as jewelry and electronics. With most insurance policies, there will be a cap placed on some of your belongings of higher value. If, for example, you have a piece of jewelry that’s worth more than the cap and you want it covered, you’ll have to have “special” insurance to cover the additional costs.
It Is Cheaper Than You Think
In a 2015 survey, many renters over-estimated the cost of insurance and thought it was too expensive for them to afford, however, the average premium costs between $15-$30 a month according to the National Association of Insurance Commissioners. There are plenty of options when it comes to finding the right policy for you.
If you are looking for an apartment home, take time to learn what renter’s insurance is and what it can do for you. It will give you a feeling of peace and security knowing you and your personal items are taken care of.