Tenants Contents Insurance
If you've ever seen a daytime courtroom show on television before, you're probably familiar with the fact that rental agreements can go sour very quickly. Whether it be a dispute or argument between the tenant and landlord, or the tenant in their roommates, friends or family members, such squabbles frequently and with the destruction or damage of a tenant's personal property. Unfortunately, many renters don't realize that their landlord's insurance does not cover their personal items within the home. Even worse is the fact that the tenant is responsible for paying for any damages done to the apartment or home during their stay, and these terms are applied to many lease agreements.
Since apartment buildings are more prone to vandalism and robberies, tenants contents insurance is especially important for people that rent apartments, duplexes, condos, rental homes in crime-ridden neighborhoods, or guesthouses. The following information describes how tenants contents insurance can protect you from financial hardships by insuring your belongings and limiting your liability in regards to the maintenance and upkeep of the rental property.
How Much Tenants Contents Insurance Coverage Do You Need?
Determining the exact amount of coverage you need can be very different, especially if you don't know the exact value of the belongings in your household. The easiest way to estimate the total needed coverage is to thoroughly document the approximate prices of all valuable and semi-valuable items in your home. If you are having trouble figuring out how much an item is worth (i.e. - an antique or gift), it may be best to take a picture of it in order to show this to the insurance company for their opinion on the matter.
It is also advisable to take pictures of all of the important items in your home as well, as this will make it easier to have a claim honored in the future if needed. By thoroughly documenting the estimated value and appearance of all of your belongings, you can not only secure a more accurate insurance quote, you can also facilitate a simplified claims process by having additional proof.
How to Receive Claims Quotes For Tenants Contents Insurance
Fortunately, receiving accurate estimates for the replacement cost of items damaged within or stolen from the rental property is relatively easy. Nonetheless, this essential step in filing an insurance claim is often ignored, to the disadvantage of the insurance policyholder. The easiest way to receive a notarized and official quote for the estimated cost of replacement to be used in a tenants contents insurance claim is to contract the assistance of an honest insurance adjuster. The job of an insurance adjuster is to calculate the total cost of goods, after estimating the individual price of each item.
However, it is important to note that insurance adjusters do not always base their value estimates on current market prices, but rather on agreed upon levels of depreciation. For example, an electronic appliance that cost $300 brand-new, five years ago, may only be valued at $50 by an insurance adjuster because of the depreciation in value that occurs with age. This concept applies to all belongings in the house, and insurance companies are very reluctant to credit exuberant claims that do not follow a similar concept of value depreciation and realistic quotes.
Tenants Contents Insurance Limits and Requirements
A typical tenants contents insurance plan has a limit on the amount that can be paid for specific types of items. For example, musical instruments, guns, jewelry, electronic devices, and collectibles, they each have their own limit on the amount that can be paid per item type. Fortunately, there are two ways to increase the limits on your tenants contents insurance policy. You can either hold applied a rider to the insurance policy that increases the total coverage for the item type, or you can allocate the total amount payable under particular item type to a single item of that type. The best way to avoid having to raise such limits is to thoroughly examine the terms and conditions of each prospective tenants contents insurance policy.