Renters Insurance Policies
ust about everybody knows how important it is to have homeowner's insurance, but significantly fewer people realize how renters insurance is just as equally as important. There are a number of differences between the two, so let's take a closer look at this insurance and see just what it is, why you need it, and just how it works.
What It Is
Most tenants are under the impression that their landlord covers all of their insurance needs. It's their property, right? Landlord's insurance only covers property that the landlord owns. These are things like the land itself and any physical structures located on it. Anything that the tenant owns inside of the buildings or on the land itself is generally not covered. It also gives tenants peace of mind by knowing their personal property is covered in the case of a catastrophe.
Who It's For
It's is for people who rent property from others. It's specifically structured in a way that covers just what the renter owns rather than who owns the property they live in.
How It Works
While insurance policies can differ significantly, there are often a number of things they all have in common. They generally address the renter's personal property, their liability (such as if the renter is sued by someone who was injured while in their apartment), medical payments (if the renter was the one who was injured), and generally any property damage that was done to others.
Different Types of Coverage
There are a number of specific types of coverage that can be obtained based on the renter's own needs. Things such as replacement cost coverage can be used rather than actual cash value coverage. There is earthquake coverage (which is generally not included in standard renters insurance). There is also coverage specific to sewer backups, disasters, and other incidents.
Aside from the real world tangible benefit of having your belongings replaced in the event of a catastrophe, having insurance will also give you the intangible peace of mind that allows you to leave your apartment without worry and to understand that you will be taken care of in the event of a disaster.
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