Advantages Of Renters Insurance

812 Words4 Pages
A renter who has problems with plumbing, their refrigerator, or heating can easily call the maintenance crew for their apartment complex or contact their renter. People who rent a home or apartment will not have many issues to worry about. However, there are a few issues that should be a worry. Any building complex or a rented home has the potential to be damaged in a storm or burglarized. Many people may not realize their possessions need to be insured. Renters insurance is the best option for anyone renting an apartment or a home. Insurance companies can tailor insurance policies for renters to fit their specific needs. One aspect that may confuse people is the coverage options and limitations that are included. The main reason is often…show more content…
However, there aspects that make each type of insurance similar. Similarities Personal Possessions – Insurance policies for renters include coverage for personal possessions. This is often the main component of the policy. Personal possessions will typically include electronics items, a set of furniture, clothing, a variety of kitchen appliances, and various tools. This same coverage will be available on a standard homeowners insurance policy. Liability – Homeowners insurance and insurance for renters also include liability coverage. A renter or a homeowner will need this coverage to protect themselves from liability that is due to bodily injury or if any property damage occurs. This can be caused by you or any family members. Additional Living Expenses – If a home or apartment becomes uninhabitable for reasons which can be due to a storm, fire, or other covered peril. This coverage is available to renters and homeowners and is used to pay for expenses, such as hotel bills and meals. Key…show more content…
This is important, but more thought should go into liability coverage. The reason is any visitors may become injured and file an lawsuit when in a renter's home or apartment. How it Works The monetary value for any loss when a claim is filed is determined by an insurance adjuster. A renters policy will reimburse a policy holder in one of two ways. Actual Cash Value – This is similar to the method used for calculating automobile insurance polices. A renter will be reimbursed the value of any damaged items after deducting for depreciation and the wear and tear that has occurred. One benefit of actual cash value is the premiums are often cheaper. Replacement Cost Value – This is a method that does not calculate depreciation and replaces any items that are damaged with similar items are current market value. However, the premiums for a policy will be higher for a renter. The Cost The total cost for a renter to purchase an insurance policy will depend on the coverage limits that have been selected. One thing to keep in mind is to create a checklist of items that are in the apartment or in a rented home. Many people will be surprised to discover the total is more than they realize. Premium
Show More
Related

  • Advantages And Disadvantages Of Renting

    769 Words  | 4 Pages

    Account for that. This in turn does not guarantee your contract to be revived. Additionally, there is no government impetus when renting. More so, there would be no fairness benefits. On the other hand, there are some advantages and disadvantages of owning a home. One of these advantages is that you would have a permanent place to stay and be secured. Also, you would have the privilege to create a unique difference at your home without obtaining consent from anybody. Additionally, you can receive tax

    Read More

  • Real House Flipping

    713 Words  | 3 Pages

    of money from house flipping. On the other hand, you can easily lose a lot of money by making poor decisions. Getting started entails having cash, which you’ll need for a down payment. The advantage of paying with cash is not having to pay PMI (private mortgage insurance) on having a second mortgage.

    Read More

  • Challenges Seniors Face In Society Today

    1694 Words  | 7 Pages

    members. Another factor in elderly abuse was discovered by Walsh, Gibson, and Brown (2016), who explained that older adults have a list of fears, and at the top of those worries was overloading their families with providing care for them since their insurance would not cover it (p.408-417). Sometimes the extra burden that the caregiver carries by taking care of their older loved ones can be a trigger for abuse. These older adults think of the burden that they are putting on their families and already

    Read More

More about Advantages Of Renters Insurance

Open Document