What are Some of the Important Details to Look Into When Taking a Renter's Insurance?
Before taking a renters insurance in Saskatchewan you should have good knowledge of all the aspects. This way you will be able to take the right policy that will provide the required coverage. In this context, let us look at few of the important details you should look into.
Get the Right Coverage
When taking renters insurance in Saskatchewan, you will have to increase coverage for losses that will affect you the most. These insurance policies have specific coverage limits on things you are insuring. For instance, the coverage could be $3,000 for business equipment kept at home or $1,500 for jewelry. As we can see, such coverage will not be sufficient to cover the losses. You will certainly not like to purchase a policy with a limit of $60,000, which gives a coverage of $1,500 when you have made a claim of $5,000 for your jewelry.
Likewise, if you are someone who works from home and you have purchased technology products (like high configuration computer and a 3-D printer) that are highly priced then the normal coverage provided by renters insurance in Saskatchewan will not be enough to cover your losses.
In such situation, you will have to ensure that the insurance that you are taking will be covering these losses.
Consider Actual and Replacement Value
At the time of looking for insurance options, you will have to keep note of two important terms, one is replacement value (RV) and the other is called actual cash value (ACV).
Let us look at the difference between the two.
Renters insurance in Saskatchewan can pay a policy holder property's actual value (known as actual cash value) or something that will be enough for purchasing a replacement (called replacement value).
Here you will have to keep note of the fact that ACV for a ten-year old sofa might not be same as expenditure you will have to make on purchasing the latest model of the same sofa.
In case, the insurance policy will be providing actual cash value then it is more than likely that you will have to pay the difference amount yourself (however, ACV based renters insurance in Saskatchewan will be cheaper in comparison to a replacement value policy).
To avoid such situation what you can do is purchase a basic policy and include additional coverage for important things you worry about.
For example, for getting coverage for expensive jewelry what you can do is get high value item coverage. But, for such coverage, you may have to get the high value item appraised.
Similarly, if there is an item which depreciates in value rather quickly then you should get a policy that will be paying replacement value instead of actual cash value.
Arrange Required Details
You should create a list of all the property that is to be insured and take pictures as well as make videos for high value items. These details will be required to prove that you owned them and they were not already damaged when the loss occurred.
To conclude we will say that renter's insurance will help you recover from losses but that will be possible only when you take the right coverage.