If you Rent a Home - Consider Renter"s Insurance
Before making a determination about buying renter's insurance, it's critical that all the facts are taken into consideration. When renting a single family house, apartment or condo, the majority of tenants do not think about renter's insurance. Most folks figure that any problems that occur are covered by the landlord. While most landlords do cover their properties, this coverage does not protect the renter's contents, only the actual construction.
It is also dangerous to take on the mindset that it will never happen to me. The chances of a serious issue occuring may be slim, however, renter's insurance exists for a reason - it has been needed by many that had it, and unfortunately those that didn't. It's well worth spending a few extra dollars to have the peace of mind that if something does happen, important items for living are recovered.
Make sure to list all of your valuables before calling an insurance agent. The reason this is so crucial is that only your valuables that are listed on the policy will be covered. Don't waste energy overvaluing your property because, if an accident occurs, the insurance company will determine there value.
Begin the search for quality insurance companies. An important question to ask is whether they offer "replacement cost" coverage or "actual cash value" (ACV). In many states, by default, replacement cost rates are quoted.
ACV policies pay only for what the lost property is worth. The insurance company will consider depreciation on all covered items and base payment on what they are actually worth currently, not on what was originally paid, minus deductible.
A policy based on replacement cost, however, pays the actual current cost of replacing the item, minus deductable. Replacement cost coverage is more expensive, but it will also provide more money towards replacing lost items should a disaster occur.
Also, it should be asked if especially valuable items, such as antiques, jewelry, or specialty electronics are covered at replacement cost. Insurance companies may cap the payout for very expensive valuables. If they do impose caps on some of your high value items, you can purchase separate riders that cover the full value.
If your rental home is unlivable due to an accident covered by your renter's insurance, it will cover alternate living expenses. Legal expenses and judgements are covered, up to the policy limit, if liability protection is added to the policy should someone have an accident at the home and need treatment or sue.
It is also dangerous to take on the mindset that it will never happen to me. The chances of a serious issue occuring may be slim, however, renter's insurance exists for a reason - it has been needed by many that had it, and unfortunately those that didn't. It's well worth spending a few extra dollars to have the peace of mind that if something does happen, important items for living are recovered.
Make sure to list all of your valuables before calling an insurance agent. The reason this is so crucial is that only your valuables that are listed on the policy will be covered. Don't waste energy overvaluing your property because, if an accident occurs, the insurance company will determine there value.
Begin the search for quality insurance companies. An important question to ask is whether they offer "replacement cost" coverage or "actual cash value" (ACV). In many states, by default, replacement cost rates are quoted.
ACV policies pay only for what the lost property is worth. The insurance company will consider depreciation on all covered items and base payment on what they are actually worth currently, not on what was originally paid, minus deductible.
A policy based on replacement cost, however, pays the actual current cost of replacing the item, minus deductable. Replacement cost coverage is more expensive, but it will also provide more money towards replacing lost items should a disaster occur.
Also, it should be asked if especially valuable items, such as antiques, jewelry, or specialty electronics are covered at replacement cost. Insurance companies may cap the payout for very expensive valuables. If they do impose caps on some of your high value items, you can purchase separate riders that cover the full value.
If your rental home is unlivable due to an accident covered by your renter's insurance, it will cover alternate living expenses. Legal expenses and judgements are covered, up to the policy limit, if liability protection is added to the policy should someone have an accident at the home and need treatment or sue.
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