Today's apartments are larger than ever before. They have plenty of amenities built into them. And, they tend to be in large buildings.
More people are renting than in previous eras. This includes Millennials. This age group is playing a significant role in transforming small apartment spaces into lifestyle centers.
Yet, this change comes with some new requirements for your financial well-being. If you are a renter in these modern locations, you need a comprehensive renters insurance policy.
Recognize What Your Assets Are
Renters insurance provides financial protection for the property you own. It protects the people named on the policy. It covers your belongings. However, it likely doesn't cover the apartment itself, because you don't own the space. Someone else does.
Still, a simple policy with a low value may not be enough. With more square footage, many apartment renters now need a larger amount of coverage. Here are some tips to calculate how much coverage you need:
- Walk through your apartment. Write down the value of any item of worth that belongs to you.
- Take photos. You can use this later for your inventory.
- Determine how much value you have in clothing and personal items.
- Consider items like art collections or high-valued electronics. You might need to add additional coverage riders for these items.
- Think about any items in a storage area. Do you have a bike in storage? Perhaps you have an onsite garage full of items.
Once you gather this information, you can determine the value of your assets. Most renters should consider replacement coverage for valuable items. This ensures the policy pays you enough to replace the item. Actual cash value is another option. However, it will likely pay out less than replacement coverage due to the depreciation of value of the items.
Do Not Forget Liability Coverage
In a complex that hosts organizes social activities, residents have more built-in opportunities to interact with others. Therefore, as a resident, you have greater risk of causing harm to another person.
For example, your pet could bite someone at the on-site dog park. Or you could injure someone by losing your balance during a group yoga session.
Be sure your renters insurance policy offers coverage for these types of incidents. Your TCU Insurance agent can help you determine the value here. You can use this coverage to compensate the injured person for medical bills or other costs.
Remember, you only need to cover your valuables and liability risks. You do not have to cover items in fitness centers, pools, or even the rooftop lounge, unless you own those items. A renters insurance policy should give you peace of mind. You should know your finances are safe if an incident occurs causing you to suffer loss.
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