When it comes to assessing the importance of renter’s insurance on homes for rent in Tucson, AZ, all data should be considered before hastily making a decision. The majority of people renting an apartment, condo, town house, or home often don’t consider obtaining renter’s insurance. Most either never consider the need for it, or think that the landlord will cover any mishaps which might occur. Most landlords or rental associations do carry insurance, but it only protects the actual structure and not the contents.
It is also dangerous to take on the mindset that “it will never happen to me”. Although an actual disaster is indeed slim, the risk for a major destructive incident is quite real and on the rise due to shifting and more violent weather patterns and denser populations. It’s well worth spending a few extra dollars to have the peace of mind that if something does occur, important items for living are recovered.
Before contacting an insurance agent, make an itemized list of everything owned of value. It’s important to list all valuables as only those items listed on a policy will be covered. In the event of an accident, the insurance company will determine the value of items, so it doesn’t work to try and overvalue them.
Begin shopping around for insurance companies that cover homes for rent in Tucson AZ. It is important to ask if they offer “actual cash value” (ACV) or “replacement cost” coverage. Many states quote replacement cost rates by default.
ACV policies pay only for what the lost property is worth. The insurance company will consider depreciation on all covered items and base payment on what they are actually worth currently, not on what was originally paid, minus deductible.
A policy based on replacement cost, however, pays the actual current cost of replacing the item, minus deductible. Replacement cost coverage is more expensive, but it will also provide more money towards replacing lost items should a disaster occur.
Also, it should be asked if especially valuable items, such as antiques, jewelry, or specialty electronics are covered at replacement cost. Some companies place reimbursement caps on such high value items. If this is the case on certain items, separate riders can be purchased which offer additional coverage in order to recover the full amount of the loss.
Renter’s insurance will also cover alternative living expenses should your rental become unlivable due to an incident. If liability protection is added, it will cover legal expenses and judgments incurred up to the policy limit should someone have an accident at your home and need medical treatment, or sue.