Fundamental Facts About Renters Insurance

1. THE POLICY YOUR LANDLORD HAS WILL NOT COVER YOUR PERSONAL PROPERTY

   Frequently, renters are under the assumption that the coverage of the insurance policy on the property they are currently occupying will automatically be extended to them in the occurrence of disasters such as power outage that damages personal property, fire, burglary or flood. They only discover that the policy only covers the building and does not extend to the tenant's personal property when the worst happens. Purchasing a renters insurance will provide the money that you can use to replace or repair your personal belonging thereby guarding against financial loss on your part. Usually, the landlord offset or compensates the tenant for the damage to his personal property if and only if the damage was as a result of the thoughtlessness or dereliction on the part of the landlord. Many landlords include a clause that explains insurance for renters as a section of the standard apartment lease contract.

2. YOU HAVE NEED FOR LIABILITY PROTECTION 

   Because accidents do happen, and even as a tenant, you may be responsible for personal injuries that affect your guests or neighbors. For example, if your guest slips and falls in your apartment, they may seek injury compensation from you. Likewise, if your pet bites a neighbor or the mailman, there's a possibility of you facing a liability lawsuit. The same applies to common household disasters, such as an overflowing bathtub that sends water flowing down over a neighbor’s personal belongings. Renters insurance provides financial protection for such situations.
   

3. COST OF REPLACEMENT MAY BE HIGH 

   You may not have many valuable possessions. Maybe, your stereo is an older model and you purchased your television second-hand. Even in such cases, costs of replacement can be high, and this is where renters insurance helps out. It provides a way for you to replace your belongings without unwarranted and needless stress or financial suffering. Although, replacing one or two personal items might be considered as being simple and not back-breaking, the cost of replacing all or most of your belongings after a fire or flood calls for thoughtful consideration.
   

4. RENTERS INSURANCE IS OFTENTIMES INEXPENSIVE 

   Even though renters insurance premiums differ, policies generally are priced to reduce their cost and correspond with tight budgets. In fact, many policies cost less than $1 per day. If that’s not enough boost for you, take cognizance of the fact that policies are usually reliant on the estimated value of your household possessions and the typical risks you may face.
   

5. COST OF REPLACEMENT GIVES MORE VALUE FOR YOUR MONEY

   
   Some renters insurance policies provide actual cash value in the event of filing for a claim. What this simply means is that the insurance company will pay what your property was worth at the time of the theft, damage, or loss. Since personal property experiences wear-and-tear and depreciates, this could leave you on a ground-level on funds for replacing your property with brand new purchases. In comparison, replacement cost or replacement value policies pay the amount it will cost to replace the lost or damaged item at current prices.

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