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Being financially ready for the unexpected is the sole responsibility of an insurance policy. When you rent an apartment there are numerous things that could happen. You don’t want to be left with a large medical bill or damaged possessions with no way to replace them. Renters insurance is a must to help all tenants prepare for unforeseen future events that could lead to financial bankruptcy.

 What Does Renters Insurance Cover?

Renters insurance is meant to cover a tenant’s possessions and financial liability. In the event of theft, vandalism, fire, flood, smoke, water, and other types of damages outlined in the policy agreement, the insurance company will pay for the tenant’s possessions. In the event that a person gets injured on the rental property due to the negligence of the tenant, the insurance company will cover their financial liability for medical expenses and lost wages of the injured party.

Not all disasters are covered under each type of insurance policy. Different companies will offer different benefits. When it comes to damage that happens to your possessions, as long as the disaster is covered under the policy, the insurance company will pay you money. They will pay you either the actual cash value or the reimbursement value of each item that was damaged.

Knowing the difference between these two types of payouts is important to your financial well-being. Actual cash value will reward you with the price that each one of your possessions is worth at the time of the fire. Keep in mind that items depreciate over time, so your $1,200 couch you bought brand new 5 years ago may only be worth $300 according to the insurance provider. Reimbursement cash value is the actual retail cost it would be to fully replace the item. These are very different.

 How Much Insurance Do You Need In Washington?

The state of Washington doesn’t require you to have renters insurance. A property owner may make renters insurance mandatory as part of your lease, however, by law, you do not have to have it. Although it’s not legally necessary, you should still invest in renters insurance for your own well-being.

The average insurance policy runs about $20,000 worth of coverage. This exact amount will vary depending on the insurance provider and the policy that you agree to. You can always increase the amount of coverage for an added cost. For most individuals, this average amount will cover all their belongings. Does it cover all yours?

The best way to ensure you are getting the right amount of coverage through your renters insurance plan is to do an inventory of your belongings. Go from room to room of your apartment and write down everything that has value. You will be surprised at just how much money you have wrapped up in one small apartment.

Once your inventory is complete, you should market down the value of all these items. By totaling the values up you will be able to get an estimated amount of what it would cost to replace all of your stuff. You should seek an insurance plan that covers more than the value of your belongings.

Remember to always give yourself some cushion room between the value of your belongings and your maximum coverage amount. This will allow you to purchase new items, such as a new stereo, without having to increase the coverage amount on your insurance policy. Be sure to add each new item of value to your inventory list. You should give a copy of the inventory to your insurance agent and keep an electronic copy that you can access from anywhere.

 How Do You Find Washington Renters Insurance Providers?

The simplest way to find many renters insurance providers is to do an online search. You will find both local Washington companies as well as nationwide providers. You can also speak with your landlord to see their recommendations. It’s likely there will be a couple of insurance offices in your Washington town that offers this type of coverage.

You should take the time to get a few different quotes. You want to ensure that you are covered in the event of a disaster and the coverage limit is more than the value of your possessions.