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Renters Insurance

One of the most appealing reasons to rent an apartment or home is that maintenance and repairs fall on the landlord’s shoulders. If a disaster hits, the landlord’s insurance policy will pay for repairs to the building, but your belongings wouldn’t be covered. Renter’s insurance is something all people who rent should purchase to protect their belongings.

What renter’s insurance is?

Renter’s insurance pays for losses of personal belongings for 16 various events. These include fire and lighting, falling objects, volcanic eruption, theft or vandalism, ice and sleet, explosions, windstorms, smoke, water damage from a plumbing, heating, or air conditioning failure, freezing plumbing structures, or accidental damage from electric current. It does not cover damage from floods or earthquakes.

What does it pay for?

Renters insurance reimburses you for personal belongings, but also offers liability protection to protect you from a lawsuit if someone is injured in your home. You can also receive reimbursement for living expenses if your home is deemed uninhabitable. Your policy can also cover medical costs if someone is hurt while at your home.

How much do I need?

You’ll want to have enough insurance to cover the costs of all your possessions. Take an inventory of everything you own. You might be surprised at how much money it would cost if you had to buy everything all over again, especially high-priced items such as televisions, computers, and appliances. Start with a $15,000 policy if you’re convinced your possessions don’t carry much value and increase it as needed.

How does renter’s insurance work?

Renter’s insurance policies typically offer two types of reimbursement options. A policy that pays “replacement cost” reimburses the amount for a replacement. You’ll receive enough to pay to replace the item at current prices. An “actual cash value” policy costs less, but it pays for the price of your belongings based on their age. If you have an older device, you’ll be responsible for paying the difference between the depreciated value and how much it costs to replace now.

Some landlords require tenants to purchase renter’s insurance. Purchase a policy that covers your belongings with some wiggle room for anything you accumulate while living there. It’s worth the expense to have peace of mind.






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