Tuesday, July 14, 2015

Renter’s Insurance - Protects Your Assets

It is true that renters too, have a natural tendency to accumulate personal possessions, which have emotional / monetary value. Consequently, it behooves that these assets be protected against damage or theft. The “Renter’s Insurance Policy” provides coverage, protecting your valuable goods against any mishaps and provides you with a means, to replace your damaged or lost property.

What Protection does a Renter’s Policy Provide? 

Homeowner’s policy does not cover your damages

A homeowner’s policy subscribed by your landlord only covers the external structure of the rented space including the walls, beams, columns, doors and windows. It does not provide coverage for your personal possessions or even the equipment provided by your landlord such as refrigerators, stoves, heaters, etc.

Your Prized Possessions

An inventory of your prized possessions will reveal that the total value of the goods, is monetarily more than you thought they could be. Consequently, not insuring your possessions and then having to replace them, in the event of a mishap, could prove to be extremely expensive. Insuring your assets, helps mitigate any unfortunate consequences. 

Renter’s Insurance covers many mishaps

In addition to loss due to theft, renter’s insurance also covers mishaps due to fire, vandalism, electrical short circuit, lightning strike, vehicle crash, heavy wind and hurricanes,  as the latter two, can wreck your belongings and offset your finances for some time. However, earthquakes, floods and landslides are covered by exclusive policies. 

Renter’s Insurance goes beyond just your personal belongings

Renters Insurance is quite broad and covers important situations.

a. Renter’s liability: If there is damage to another renter’s property (or even your landlord’s property) because of your negligence, you are liable to pay for damages to their property. For example, water seeps from your bathroom into the home below, and it damages the walls. You are liable to pay for those damages, which are covered by the Renter’s Insurance.

b. Personal Liability: If somebody incurs bodily harm or property damage due to you or your pet(s), you are liable to pay for their medical expenses. Example: your pet dog bites your landlord, or a visitor slips and falls in your home.

c. Loss of Use: If your rental space is rendered unusable by a mishap such as a fire, you will be forced to look for temporary accommodation, elsewhere In such a scenario, you will be covered for additional living expenses incurred during this period, such as hotel or temporary rental bills, meals, laundry etc.

d. Car Interiors: This covers all those possessions that were inside your car when it was .damaged. This includes books, CDs, stereo or sound systems, onboard computers, etc, which are not covered by typical auto policies. 

Renter’s Insurance is not expensive

By paying a few hundred dollars of premium every year, you can cover all your personal belongings.

What is covered?
  • Furniture
  • Clothes
  • Electronic equipment like desktop and laptop computers, mobile phones, kitchen appliances, sound systems, CD/DVD players, gaming consoles, etc
  • Kitchen utensils
  • Jewelry and Watches
  • Modern and Antique artifacts
  • Sports and Fitness Equipment
Policy Types
  • Actual Cash Value: The insurer factors depreciation while evaluating damages to your goods and willsettle claims as per the present market value of those goods. Accordingly, premiums are low.
  • Total Replacement Value: Depreciation is not factored and the original price of the goods at which they were procured will be settled in case of a claim. Accordingly, premiums are high.
Reach out to an insurance broker or company to help guide you through the complex terms and conditions and the very fine print. Use their guidance to ensure that you have the right coverage.

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