SOUTHFIELD RENTERS INSURANCE
Southfield renters insurance is not mandatory if you are a renter, but it is a good idea to have renters insurance if you are renting any property in Southfield, MI. The reason is because you never know when the unexpected is going to happen. Like many who are uninsured, you may have faith that nothing will ever happen. No fire will happen, no theft, and no natural disaster will strike the property.
Unfortunately, the belief that nothing bad will happen is one that have led many to lose everything. However, there are many within Southfield and all throughout Michigan who have found solace in renters insurance. Any time disaster struck, they had coverage on their belongings to ensure that they could acquire replacements and get back on their feet. Although nothing can replace what a person once had, Southfield renters insurance can ensure that restoring your lifestyle is not as difficult as it could be.
How it Works
Some do not have Michigan renters insurance because they are not aware of what it covers or the benefits. The events that are covered by Southfield renters insurance includes windstorm or hail, fire or lightning, theft, explosion, water damage caused by faulty plumbing, electrical surges, vandalism, and much more. Although some events may not be possible in some areas, there are some events that can.
Because the landlord most likely has coverage on the Southfield structure itself, Southfield renters insurance does not cover the structure. What it covers is your belongings. And where homeowner's insurance usually covers a home and everything in it, in this case the property is a rental property and it is your responsibility to maintain renters protection on your belongings in case disaster strikes.
If you have expensive belongings such as televisions, sound systems, furniture, and a number of other expensive items, then you need Southfield renters insurance. You simply tell the insurer how much coverage you need and a premium will be generated on a renters home insurance policy for you.
However, you do have several options. You can use quotes to determine how much renters insurance coverage in Southfield is right for you. You can place a value on your belongings and go from there. If you think your belongings are worth $10,000 and that that amount would enable you to successfully replace them, then you may opt for $10,000 in protection. If you think your belongings are worth $20,000, then you may want to opt for $20,000 in protection. Not having enough Southfield renters insurance could result in you not being able to replace all of your belongings.
If you're not able to completely replace all of your belongings, you will have to pay for the difference if you wish. Paying for the difference could be more expensive than paying a higher premium for your Southfield renters insurance.
Actual Cash Value
There is an area in the renters insurance policy that talks of the actual cash value versus the replacement value. Replacement value is going to pay you the amount of money that the destroyed items cost you when you purchased them. Actual cash value pays you what the items are worth at the time they were stolen or destroyed.
Replacement value does result in your Southfield renters insurance premium being higher and many in MI do not opt for this. They opt for the actual cash value because the premium is lower. You do have to ask yourself, however, if this is the best option. You may have a computer that you paid $1500 for, but now that computer is worth $200. It is very difficult to buy a computer in Southfield for $200 unless you're buying one that is severely outdated or needs a lot of work.
You may have recently purchased your living room suit at an expensive Southfield furniture store, but after leaving the sales floor it depreciated in value. You would have to buy a cheaper suit rather than the same exact one because you would not receive what you paid for it.
If you are fine with actual cash value because some of your belongings you wouldn't need to repurchase anyway, then that is a decision you can make. It is suggested, however, to take an inventory and make this determination.
In the end, you will find that Southfield renters insurance will provide you with the protection that you need in order to replace your belongings in the case an event beyond your control occurs. Even though you may believe that nothing will happen to the property, you never know when a pipe may burst and cause flooding or when an electrical problem may cause a fire. It is even possible for a heavy snow to cause your roof to collapse. Besides, you live in Michigan and weather-induced disasters are certainly not out of the question.