I Rent, Why Do I Need Insurance?
Most people think that renters insurance only covers contents and sometimes think it's not worth the money to get the coverage.
The first step to realizing you need the coverage, is knowing what coverage you're actually getting.
Renters insurance doesn't just cover contents, it also covers additional living expenses and more importantly, personal liability which every single person (rent, own or lives with parents) needs.
Personal Liability This covers you anywhere in the world for lawsuits against you.
If somebody were to sue you for personal injury or causing damage to their property, you would be covered under the liability coverage of your renters' insurance policy.
Most people have $1,000,000 liability coverage; some even go to the provincial max (Ontario) of $2,000,000.
Could you imagine being sued and ending up have to pay $1,000,000 out of your own pocket.
There is only one place in the world your renters insurance does not cover your liability...
in your car.
When you are in your car, your car insurance liability coverage takes over.
If you own a home, this is covered on your homeowner insurance, if you live with your parents, this is covered on their insurance, if you rent you need to have renters insurance to have this coverage.
Additional Living Expenses This coverage usually has a set dollar amount and covers you for finding other accommodations after a claim.
For example, if there was a fire in your apartment and you had to move in to a hotel while it was being repaired after the claim, the hotel expense would be covered under this section of your policy.
Contents Plain and simple, covers the contents in your home and with you while away from your home.
Did you know that if your car is stolen, anything not attached to the car is not covered under your car insurance, it is covered under your home (or renters) insurance.
For example, if your car is stolen and you have a laptop, golf clubs, iPod and a portable GPS in your car, your car insurance will not cover them!! They will only be covered on your home (or renters) policy.
Renters Insurance is too important to go without so don't wait until it's too late because you'll kick yourself when the time comes and you wish you had spent the $15/month for the coverage.
The first step to realizing you need the coverage, is knowing what coverage you're actually getting.
Renters insurance doesn't just cover contents, it also covers additional living expenses and more importantly, personal liability which every single person (rent, own or lives with parents) needs.
Personal Liability This covers you anywhere in the world for lawsuits against you.
If somebody were to sue you for personal injury or causing damage to their property, you would be covered under the liability coverage of your renters' insurance policy.
Most people have $1,000,000 liability coverage; some even go to the provincial max (Ontario) of $2,000,000.
Could you imagine being sued and ending up have to pay $1,000,000 out of your own pocket.
There is only one place in the world your renters insurance does not cover your liability...
in your car.
When you are in your car, your car insurance liability coverage takes over.
If you own a home, this is covered on your homeowner insurance, if you live with your parents, this is covered on their insurance, if you rent you need to have renters insurance to have this coverage.
Additional Living Expenses This coverage usually has a set dollar amount and covers you for finding other accommodations after a claim.
For example, if there was a fire in your apartment and you had to move in to a hotel while it was being repaired after the claim, the hotel expense would be covered under this section of your policy.
Contents Plain and simple, covers the contents in your home and with you while away from your home.
Did you know that if your car is stolen, anything not attached to the car is not covered under your car insurance, it is covered under your home (or renters) insurance.
For example, if your car is stolen and you have a laptop, golf clubs, iPod and a portable GPS in your car, your car insurance will not cover them!! They will only be covered on your home (or renters) policy.
Renters Insurance is too important to go without so don't wait until it's too late because you'll kick yourself when the time comes and you wish you had spent the $15/month for the coverage.
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