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Saturday, 15 June 2013

Renter's Insurance Is Essential

By Shannon Towsent


Homeowners are required to have an insurance policy covering their possessions and home. But there isn't usually the same requirement for renters. However, getting a renters insurance policy when you are renting a house or apartment is an excellent idea. Too often, renters don't think they need insurance.

Renters Insurance Basics

The renter and their property are protected by a renter's insurance policy. You'll need to select a coverage amount and a deductible amount. The deductible is what you are able to pay in the event of a claim. The higher the deductible, the lower the premium.

The landlord's insurance policy does not usually cover renters. However, in the event of major unexpected damages or losses, it's important for renters to be protected financially. Tenant's insurance is affordable. It is a modest amount to protect all the possessions in your rented home, not to mention the liability in case someone is injured in your home.

Many renters do not have tenant's insurance because they don't realize the real value of all their possessions. Conduct a home inventory to estimate what your belongings are worth. List everything you own, including clothing and furniture, and estimate the total replacement cost.

Liability Coverage, Too

Even though you don't own the property, you are responsible for ensuring that any visitors or guests are properly protected. They could sue you for damages if they are injured by an animal or a fall. Most of the costs of a successful lawsuit will be covered by a good renter's policy.

You may be surprised to learn that as a renter, you are legally responsible for the harm you cause to any part of your building, and to others who live or visit there. Liability and contents coverage are the primary two types of coverage offered by tenant's insurance policies, but they can vary from one insurance company to the next. Liability coverage protects you if you or your guests cause damage to the building, or if someone is injured in your home and sues for damages. Contents coverage enables you to replace or repair your belongings if they are lost or damaged.

Evidently, the benefits of tenant's insurance mean it is essential for anyone renting a house or apartment. It can cost between $125 and $200 a year for a basic tenant's insurance package for an apartment in a building. The risk increases if you add additional coverage for items of higher value, or if the space also is used for business purposes. But, considering the entire replacement cost, purchasing insurance coverage is very affordable.




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