Renters insurance is similar to homeowners insurance where you insure your house. However, while in a homeowners insurance, you insure your own house which is named after you, in a renters insurance you pay up to insure your items in a rented place. The reason why renters insurance is important is the fact that even though the landlord is responsible to fix the house and pay the charges in case all electrical lines fail, he won’t be responsible to pay for your damaged appliances. Here, renters insurance will help you in covering the expenses of getting the appliances repaired.
There are a number of different renters insurance policies in Ann Harbor and all you need to do is to select a plan which will suit your requirements and will provide cover for all things that are your responsibility in a rented place.
* Deductible
A deductible is the amount that you are ready to pay before the insurance policy covers the rest of the expenses. For instance, you need $600 for repairing a house item that malfunctioned due to a power failure. The deductible will be the amount that you’ll pay from your own pocket before the insurers pay the rest. So, if your deductible is set at $200 then the $200 for the repair will be paid by you while the remaining $400 will be paid by your renters insurance in Ann Harbor.
So, if you want to pick a policy which can insure for all of your items then choosing a lower deductible is better as even the smallest expenses would require the insurer to pay up. However, it is important to remember that the lower the deductible the more you will pay as premium annually/biannually or monthly.
* Replacement value or Actual Cost Value
You can opt for either of the two options in your insurance plan. A replacement value will make the insurance company bring you a replacement for the equipment. For instance, if your toaster is burnt then the company will actually replace the toaster. However, if you choose an actual cost value then the company will pay you the current market value of the toaster instead of replacing your toaster.
It is important to remember that the insurers will see the location of your rented house and the claims made from people who resided in the house previously to determine the premium amount you’ll have to pay for your plan. The more risky location your house is at, the more premium you’ll have to pay for. By paying special attention to these aspects in your renters insurance in Ann Harbor, you should be able to secure an insurance, which will help you in paying your expenses in case of any problems or issues.
