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A Beginner's Guide to Renters InsuranceEvery tenant needs renter's insurance because it is false to assume that your landlord's insurance will cover you in the event of a disaster. You are responsible for the loss of your personal property in the event of a fire, flood or any kind of accident. As a rule of thumb, never assume that your landlord's home insurance covers the loss your personal property in the event of fire or theft. Clothes, jewelry, stereos, televisions, computers, furniture, artwork and other valuable possessions are not protected against loss or destruction unless you arrange coverage through a tenant or renters insurance policy.The simple fact is that most tenants could benefit from a comprehensive renters insurance policy. This comprehensive policy should include property insurance as well as liability insurance. This protects tenants against the loss of their belongings as well as huge legal bills if they cause an accident that damages the landlord's property or harms other residents of the building. A good comprehensive renters insurance policy will include property coverage. This protects your belongings in the event of damages arising from fire, water, damage, theft, explosions, windstorms, floods and more. Before you purchase your policy, the insurer will ask you for the actual cash value of what might be lost during a disaster. Usually this list does not include items that depreciate rapidly such as linens and tableware. The actual cash value policies allow you to replace your lost items with new ones at the same price. However some companies do place limits on what they will pay out with regards to the actual cash value of certain types of property such as jeweler, money, securities and firearms. Usually the company will agree to supplement your credit card so that you can immediately pay for damage to your rental home. This is so that you can move back into your home as soon as possible. A good comprehensive renter's insurance policy will also cover the cost of a hotel should you have to vacate your rental home. It will also pay your legal costs should you be liable for damages caused to another tenant's property or injuries caused to another tenant. Liability renter's insurance is suggested because your landlord is often excluded for an accident that occurs within your rented residence. You are the one who will be held liable if injury is caused to another person. Many tenants don't purchase renter's insurance because they believe it is prohibitively expensive. In truth renter's insurance typically costs the tenant less than $100 a year. Another common myth among renters is the belief that they are covered by the landlord's policy. Usually the landlord's insurance covers the costs of repairing the building and nothing more. Renters insurance offers the same general personal property coverage and liability protection as a homeowners policy. Property insurance covers the cost of repairing or replacing personal property that has been damaged, destroyed or stolen. The liability component of renter's insurance protects you from being sued by individuals hurt on your landlord's property. Most of all renter's insurance provides you with the kind of peace of mind that comes with the knowledge that you will be able to handle any circumstance that should come your way in the future.
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