Apartment insurance is an important investment that you should make, regardless of whether you’re renting your apartment or if you’ve already purchased it. This article lists down everything that you need to know about this insurance, from why you need to get it to tips in how you can buy the best one for you.
The Need for Apartment Insurance
A lot of people don’t bother getting apartment insurance because they believe they don’t need it, simply because they haven’t bought the property that they’re staying at. This is a wrong mindset to have, because your apartment serves as a home that you stay in and store your valuables, regardless of whether you bought it or are renting it. As such, you are not exempt from the problems that beset a homeowner, ranging from natural disasters (such as flooding) to manmade problems (such as theft and fires). As such, getting insurance will be a good way for you to protect your properties.
Apartment insurance isn’t just meant to protect your properties from destruction or damage. It can also provide you coverage in case a visitor of yours has an accident while in your apartment. At the same time, insurance can also give you financial protection in case any of your properties cause damage to other people’s property, such as when your bathtub overflows, causing water damage to the apartment unit beside yours.
Factors to Consider in Choosing Apartment Insurance
Listed below are some of the things you will need to take into consideration in choosing an insurance policy to protect your property.
Your needs. First of all, you need to make sure that the insurance that you’re buying is appropriate to your needs. Does it actually cover the neighborhood that your apartment is at? Did you buy the apartment or are you renting it? Does it specify what kind of housing it covers? For example, a lot of people don’t know the condo / co-op difference. Co-op, which stands for cooperative housing project, is a kind of arrangement where you don’t actually own the apartment; rather, you actually own shares of the co-op corporation that owns the building. Condos, on the other hand, can actually be bought by their owners. These properties have specially designed apartment insurance policies for these, so do make sure that the policy you’re getting actually fits what your needs.
Comprehensive or minimal? The level of coverage and the insurance rate have a direct relationship: the higher the level of coverage you get, the more expensive your premiums will be. Conversely, the lower the coverage, the cheaper your apartment insurance policy will be. Ideally, it is advisable for you to get a comprehensive policy to make sure that your property gets ample protection. However, if you can’t afford to get comprehensive insurance, try to get as much coverage as you can get. At the very least, your insurance should cover fire and smoke, theft, vandalism, and damage by wind, lightning, and flood (if your apartment can be reached by floods).
Do you need apartment insurance for the contents of your home? You can also choose to get coverage for all of your possessions in the apartment. You can either get a blanket apartment contents insurance, or you can itemize all of your possessions in the apartment and present the list to your insurance provider to get these covered. Both have their own share of advantages and disadvantages. With blanket insurance, you will not have to painstakingly list down all of the items you have, and their corresponding value. On the downside, you may find yourself short changed if your possessions are much more expensive than what is stated in the blanket coverage.
Kind of apartment insurance. Once you’ve determined how much coverage you will need, it is now time to choose what kind of insurance you will actually need. There are two kinds of apartment insurance you can choose from: actual cash value coverage is exactly what its name suggests: you will get cash that corresponds to the value of your property at the time of damage or loss. This type of coverage takes into consideration price depreciation. Replacement value coverage, on the other hand, provides enough money to replace the damaged properties, regardless of their value at the time of damage or loss. Do note that the latter is the more expensive option, but it makes up for it since it gives more money to the claimant.
Reputation of the insurance provider. Finally, do make sure that you take the reputation of the insurance provider into account. Are they notoriously difficult to ask for money from? Do they have a stable financial standing? Do make sure that you do proper research about the apartment insurance provider as well to make sure that you’re getting the best insurance coverage for your property. It is not the best idea to always just go for the cheap house insurance deal, the reputation of the provider is also important.
Apartment Insurance Summary
Apartment insurance doesn’t have to be expensive. Don’t be afraid to shop around and ask for renters insurance quote from different insurance companies so that you will be able to identify offers the best apartment insurance coverage at an affordable price.