Before you even start looking for a Memphis apartment, you should look into renter’s insurance. This is a must-have expense you need to include in your budget. Know what your renter’s insurance will cover before signing a lease.
The basic reason to have renter’s insurance is that, with rare exceptions, landlords are not responsible for your personal property. If you have storage space in the lower level of your Memphis apartment building and a sewage line bursts, all of your stored items will be irreparably damaged and need to be discarded. The landlord is responsible for repairing the sewage line and the storage space. He is not required to replace your ruined items stored in the space.
If damage occurs in your Memphis apartment that prevents you from staying there, your renter’s insurance can help you with the cost of temporary housing. Depending on the type of coverage you have, your renter’s insurance will cover any of your personal property damaged as well. You need to decide ahead of time if you want your insurance to provide the replacement cost or actual cash value of your items.
Let’s assume your large screen television cost you $1,500 three years ago when you purchased it. If your insurance provides for replacement cost of items, you could receive $1,800 to purchase a similar type of television. If your coverage is for actual cash value, you may receive $750. This is the current value of the television. Before purchasing renter’s insurance, you need to decide the value of your personal property you want the insurance to cover. Think specifically about replacement costs.
Another reason to have renter’s insurance is in case you are sued by someone injured on your property. If you have a friend over and a picture falls off the wall and hits their head, they may sue you. Your renter’s insurance will cover the cost of the attorney you hire to represent you in the lawsuit. The liability protection afforded by your renter’s insurance is well worth the cost.
At minimum, you should have liability insurance. You do not need to have insurance for your personal property if you are not concerned about replacement costs. However, anything can happen that you will be liable for. If you have furniture on your balcony and wind causes something to fall from your balcony onto a neighbor’s patio damaging their furniture, your neighbor can sue you.
Make sure you understand what your insurance covers. Renter’s insurance does not cover the cost of each and every personal item in your Memphis apartment. A separate dollar amount is not placed on each item. Instead, your insurance agent will set a fixed amount for all of your personal items you want covered.
You also need to understand your deductible. Know how much you must pay before your insurance picks up the tab. If you have to have temporary housing, you may have to pay up to $500 and your insurance will cover the remaining balance.
There are specific factors that your insurance agent may consider when drafting your renter’s insurance policy. If you live in a high crime area, your premiums may be higher. Your renter’s insurance will protect you in case of theft, but your choice to live in a property with higher crime rates may impact what your insurance agent is willing to cover. Your insurance agent may recommend a separate policy for your most expensive items.
Keep in mind, if you have a history of submitting claims to your insurance providers, this could raise your premiums or deductible. In addition, your insurance provider is likely to look at claims submitted by neighbors living in the same Memphis apartment building. If you still choose to rent that Memphis apartment, make sure you get your renter’s insurance as soon as possible.