Thursday, 25 October 2012

Sound Reasons for Renters Insurance

By Eliza L. Sandberg


Landlord's insurance does not cover their renters. This is something that is clearly misunderstood by a large segment of renters. Structural damage is normally covered by the landlord, but possessions of the renter are not. And these costs can really add up. A renters insurance policy can help cover losses due to common perils like theft, fire and smoke, vandalism and water damage.

There are Increased Risks in Common Dwellings

Keep in mind, in apartment buildings, you may have less control over things like fires occurring in adjoining units. Your renters insurance can protect you. Imagine the costs required to replace everything you own in the event of a disaster like a fire. With a proper policy in place, you can have all your items replaced. Your renters insurance policy will help you so you are stuck paying everything by yourself.

Even though you don't own the property, you are responsible for ensuring that any visitors or guest are properly protected. If they fall, or are injured by an animal, they may decide to sue you for the damages. A good renter's policy can help cover the costs of a successful lawsuit.

Don't Pass on Security

The cost of renter's insurance is usually low because unlike homeowner's insurance, it covers only personal property and liability, not the structure. One way to lower your premium is to have a higher deductible.

Unfortunately, the Worst Sometimes Comes True

Accidents do happen, so if you find yourself in a situation where you need to replace your goods, there are usually some options you can consider. Sometimes, you may elect for the actual cash value if there is something you don't really want anymore. The other options is to have your items replaced.

Make Insurance Part of your Rental Agreement

Your home insurance policy will not cover your tenant's property, nor will it cover your own property in the unit, such as window coverings, appliances, or furniture in a furnished suite. You may need to add "landlord's property" insurance to cover anything owned by you. Your renters need to have their own policy in place. It's a great idea to make this a requirement of your rental agreement. Their private items will be protected and you will likely have your property covered in the event they cause any damage to your home.




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