Renters Insurance 101 Explained

Renters Insurance 101 Explained
If you​ rent a​ home or​ apartment instead of​ owning a​ house outright you​ may not think you​ have a​ need for insurance or​ believe that it​ is​ even available to​ you​ for that matter .​
The truth of​ the​ matter is​ that regardless of​ whether you​ own or​ rent it​ is​ a​ good idea to​ have insurance and even if​ you​ rent instead of​ buy you​ can qualify for insurance; it​ is​ known as​ renters insurance and it​ can be a​ safety net you​ can’t afford to​ miss .​
At a​ minimum renters insurance will cover your personal property such as​ furniture,​ clothing and electronics in​ the​ event of​ theft,​ fire or​ natural disaster .​
Renters insurance may also provide protection for you​ in​ the​ event that someone is​ injured while at​ your residence .​
There are several options available with renters insurance which can give you​ a​ lot of​ flexibility depending on​ your needs and how much you​ want to​ spend on​ it .​
Personal property coverage will cover just your personal property in​ the​ event there is​ damage related to​ fire,​ hail,​ smoke,​ vandalism,​ lightening,​ plumbing,​ etc .​
This type of​ policy will also cover your personal belongings in​ the​ event you​ are the​ victim of​ theft .​
In order to​ take out this type of​ policy you​ will fix a​ value on​ your property and the​ policy will be written for that amount .​
Make sure you​ determine an​ accurate value for your personal property or​ you​ may find yourself undercovered in​ the​ event of​ the​ unexpected .​
You can also take out personal liability protection which will protect you​ in​ the​ event that you​ are sued due to​ an​ injury incurred by someone while visiting your residence .​
This type of​ policy will cover related damage as​ well as​ relevant legal costs .​
The minimum for such a​ policy is​ usually $100,​000 and will cover injuries or​ damage that is​ occurs while at​ your residence or​ that is​ caused by you,​ your children or​ pets .​
Another type of​ policy you​ may wish to​ consider is​ known as​ additional living expenses .​
In the​ event that you​ can no longer live in​ your rented residence because of​ a​ hazard that is​ covered under the​ policy,​ this type of​ coverage will pay up to​ 20% of​ the​ contents coverage amount in​ order for you​ to​ pay additional living expenses .​
This would include hotel costs as​ well as​ meals,​ laundry,​ etc .​
until your residence is​ ready to​ be re-inhabited .​
An improvements coverage allows you​ to​ apply up to​ 10% of​ your contents coverage in​ order to​ either replace or​ repair items that you​ redecorated or​ altered before a​ covered hazard occurred .​
In the​ event that you’re held legally responsible for fire damage to​ your place of​ residence,​ a​ fire legal liability policy will protect you​ .​
It is​ important to​ be aware that you​ are usually liable for deductibles with renters insurance just as​ you​ would be with any other type of​ insurance coverage .​
You can adjust the​ deductibles in​ order to​ lower the​ cost of​ your premium,​ which may make the​ policy more affordable.

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