Sunday, 1 January 2012

Renters Insurance - What You Need To Know

By Lynne Keller


You could be asking for a world of trouble if you are renter who does not have any renters insurance. Having renters insurance is important for anyone who is renting anything from anyone in case a disaster should strike. The disaster could be in the form of damage from leaks, flooding, fire, earthquake, or tornado. Aside from that, they could also come in the form of lawsuits or injury if a guest to your home has hurt themselves with. If disaster strikes at any time and you do not possess renters insurance you could lose everything and have no way of retrieving it or any way of replacing it.

While you see your landlord insure the home itself if anything were to happen to it, their policy will not really cover your possessions. It is important to know what you can expect when you are looking for renters insurance. Insurance companies may offer different coverage than another and will almost certainly depend on what area of the world you live in since not all of them are the same. In general, what your insurance company will likely cover are events such as lightning, fire, smoke, and hail or a windstorm. Additional coverage with the policy or at an additional fee to cover flooding, water damage due to damaged pipes, damage to your property from vehicles or aircraft, falling objects, and riots may also be offered by your insurance company.

If ever there are damages to your possessions, then it is likely that your renters insurance will help in one of two ways, either by issuing you a check for the actual cash value of the damaged items or issue you a check for the amount it will take to replace the damaged items. There is a simple difference between the two and that is the fact that the actual cash value will be the amount it will cost to replace the damaged items with the depreciation value subtracted.

While you cannot replace the actual items that may be of high sentimental value, renters insurance will allow you to at least be able to retrieve replacements for your items. You could still be able to lead the same quality of life with renters insurance even if a disaster were to strike your rented home.

Trying to speak with your renters insurance agent and know everything that is covered, what the costs are monthly, what your deductible is, and how to file a claim if a disaster should happen to strike is another important thing you need to do.




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