If you are like many renters out there, you are probably ignoring renters’ insurance thinking that you will not need it. Have you thought of what could happen in the event of a tragedy such as a fire or theft? You will probably lose your property and replacing it can be quite expensive. Some renters avoid renters insurance Los Angeles because they think their landlords insurance will cover their personal property, some do not know that renters insurance exist and others just avoid it because they think it is a tedious and complicated process. If you are among them, this is a guide to help you understand renters’ insurance.

What does renters insurance cover?

Basically this insurance is designed specifically for people living in rented apartments. The policies are meant to protect your belongings from destruction or loss. The specifics of the policy can vary but they mostly cover in case of the following events:

•    Windstorm and hail
•    Fire or lightning
•    Explosion
•    Theft
•    Damage caused by aircraft or vehicles
•    Vandalism
•    Volcanic eruption among others
Most basic plans usually cover just your personal property. In this case you can be reimbursed the actual cash value or the replacement cost depending on the coverage.

You can pay lump sum and save money
It is normal to want to save some money whenever you can. With renters insurance you can save some money by paying lump sum for the entire year. By doing so you get a huge discount. Most of the insurance companies do agree to receiving monthly payments but they charge extra for installment plans. By paying lump sum you save a little extra cash each month that you can put to better use.

Understand the claim process
It is important that you learn how to file a claim even before you need to. Most people will rarely have to file and when need arises they usually learn as they go. You need to know what numbers you will need to call and the information that you need to file a claim. By doing this before tragedy strikes you will have all the crucial information available.

Evaluate the true value of your possessions
When getting the insurance it is not the time to play guess work. If you do so, you will end up losing plenty of money and not just your property. You have to choose between actual cost and replacement cost policies. Replacement cost policy usually covers the actual cost of replacing your possessions while in actual value they take into account depreciation so as to know how much to pay you in case of a payout.

With the above information, you have a better understanding of renters insurance and you can get your possessions covered.