Signing a new apartment lease is exciting, as it means you will soon move into your new place. But renting a new apartment requires a few steps for you. One step is buying renters insurance. Have you ever purchased this before? If not, you might have some questions, and here are four that you might want to ask the agent you speak with about buying a policy.
Is Renters Insurance a Necessity?
The first thing you might want to ask is if renters insurance is a necessity. Do you need to have renters insurance when renting a property? Some landlords leave this decision up to the tenants, while others require it. In either case, you should consider it a necessity. Renters insurance is your only protection for the things you own. Without coverage, you take on significant risks if a peril ever destroys the unit you rent.
How Should You Determine How Much Coverage to Have?
Next, you might want to ask the agent how much coverage you should have. For an agent to answer this question, they might ask you to create a list of the things you own. Creating a list, taking pictures, and video-taping your things are excellent steps to prove what you own, and doing these things can help you determine how much coverage to purchase. Once you know the value of your things, your agent can suggest how much coverage to buy.
How Does the Compensation Work After a Claim?
You might also benefit by asking how compensation works after a claim. Insurance agencies use various methods for determining how much to pay after a claim, but most agents use one of two methods. Here are a few examples:
The first method is the actual value. With this option, you receive compensation for the actual value of the things you lost in the peril.
The other method is the replacement coverage value. With this option, you receive enough compensation to replace everything you lost.
What Deductible Options Are There?
Finally, you can ask about the deductible options. Most insurance agents let the policyholders choose their deductibles, and you can select an amount you feel comfortable with for your deductible. Most people choose an amount between $200 to $1,000.
When you speak to an insurance agent about renter's insurance, you can ask these questions and others that you have. If you would like more information about renters insurance, call an insurance agent at Woodmansee Insurance Inc today.