Good renters’ insurance coverage offers financial protection to people who rent living spaces such as apartments, condos, townhomes and single-family homes from a property owner. A policy can be obtained from a myriad of insurance companies and, in some cases, a property management company or a landlord will mandate that the renter purchase this kind of coverage. However, this is not always the case. Most landlords or condo associations only purchase insurance protection for the exterior of the building covered and common areas. These kinds of landlord policies do not, however, extend protection to items that are important to tenants. This is why renter’s insurance can be so important.
Coverage limits are adjustable and, consequently, the cost for coverage goes up based on the policy purchased. Deductible amounts can also be raised or lowered thus affecting the cost of premiums. Renters are well served to investigate the property to ensure they purchase the amount of coverage most appropriate for the individual rental. Basically, this kind of policy is designed for those who live in rental properties and covers much that a typical homeowner’s policy would also protect, like wardrobe and appliances, electronic items, computers, collectibles, furniture, and more. Under renters’ coverage, (specifically an “HO-4” policy), your personal belongings and you will be protected from fire, theft, vandalism, and even some forms of water damage. This type of coverage can also safeguard you from accidental damage you might cause to someone else’s property and can give you protection should a lawsuit arise from an injury that happens while someone is visiting the rental home. This coverage can also extend to belongings in a garage, on a deck, etc. Coverage can compensate by either covering the current cash value of covered items or the replacement cost of covered belongings. Actual cash value is the cash value of the property at the time of damage or its theft. Replacement cost coverage is the expense to replace the items on the market, (after paying the policy deductible). Replacement cost policies are more costly but will obviously payout more substantially in the event of a covered loss. Good renter insurance coverage can be a financial lifesaver for a renter. Sometimes, it’s only in the aftermath of loss that one fully understands the value of rental insurance coverage!
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