How to Choose the Best Renters Insurance Policy
If you rent, it is worth buying an HO-4 insurance policy. Depending on the insurance company, you may get additional protection on top of everything else. Loss of use coverage is sometimes included and can help pay for your temporary additional living expenses. This type of coverage is useful when you must live elsewhere due to a covered loss, like a windstorm that takes the roof off your rental home.
Pro tip: always document your personal property, such as expensive electronics, antiques, and musical instruments. Depending on the type of coverage, it will come in handy when your insurer replaces your things. Your coverage will either be based on replacement cost or actual cash value. The difference between the two types? Replacement cost covers the cost of an item’s original value. Actual cash value covers an item’s original value minus depreciation, resulting in a lower payout or reimbursement from your insurer. When you can, always opt for replacement cost coverage in case you have to replace your things.
When you go to buy rental insurance coverage, you must consider your individual needs. You may travel often, and a policy that includes personal property coverage on your belongings when you stay in a hotel may be ideal. Working from home is more common nowadays, too. You may have expensive computers or other electronics. Having the right amount of coverage on your HO-4 insurance policy would be best.
Your insurer may offer additional coverages on high-end computers or identity theft protection. Because most optional coverages like these don’t increase your rate, opting in may be worth it to cover your valuables’ extra costs. Alternatively, you can schedule your high-value belongings. When you schedule your valuables, you are getting those items full-value coverage. So, if your diamond bracelet is stolen, you won’t reach your coverage limits trying to replace it.
