Tag Archives: actual cash value

Renters Insurance and why you need it.

120_rentersAccording to a recent Insurance Information Institute survey, only 35 percent of people who rent have renters insurance for their belongings. This is in stark contrast to the 96 percent of homeowners who have insurance, usually a pre-requisite for getting a mortgage.

Who rents and who owns (and where). You can click here to see some quick and interesting stats on homeowners vs. renters in America.

Renters insurance isn’t expensive. The average policy typically costs around $200-$250 a year—less than your cell phone bill and a few nights out on the town (depending on your tastes and if you’re still on your parents’ family plan).

In and out. Renters insurance covers the things you own in and outside your apartment. Bicycles and smartphones are typical examples of items used outside of your home that are covered on your renters policy. Check with your insurance agent to find out what’s covered and what’s not.

Block ID theft. Look to see if your renters insurance policy has ID fraud expense coverage. Bunker Hill pays for any expenses you incur as a direct result of an identity theft—this optional endorsement makes renters insurance worth it for many people.

There are two main types of renters insurance:

  • Actual Cash Value – this is your most economical option; it covers your belongings but factors in depreciation (lost value of item over time).
  • Replacement Cost – this type of coverage costs more than Actual Cash Value, but pays the real cost of replacing your possessions, without accounting for depreciation.

There are also endorsements – extra coverage – that you can purchase on top of your standard renters or homeowners insurance. You may want to consider purchasing extra insurance if you own expensive jewelry, furs, collectibles, or other costly, hard-to-replace items.

To find out what a renters insurance policy will cost you, you can find a Bunker Hill agent in your neighborhood by clicking here.

Headquartered in Boston, Bunker Hill Insurance provides home insurance to customers in Massachusetts and Connecticut. Plymouth Rock Assurance Corporation provides auto insurance to personal and commercial auto insurance customers in Massachusetts and Connecticut. They are members of The Plymouth Rock Group of Companies, which together write and manage over $1 billion in homeowner’s and auto insurance throughout the northeast. Each of these companies is financially responsible only for its own insurance products. Actual coverage is subject to the language of the policies as issued by each separate company.