Every 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
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.