| Rent A Home? What Happens If Your Items Are Damaged? |
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| Written by Justin Daniffer |
| Thursday, 04 November 2010 21:07 |
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When thinking about whether or not it's important to obtain renter's insurance, it's important to examine all the information before determining. Obtaining renter's insurance is not considered by the majority of those renting a home. Most believe they won't ever need it, others believe any problems will be taken care of by the owner. Most reputable property owners carry insurance on their rentals, however it only covers the property structure, not the tenants belongings.
When it comes to assessing the importance of renter's insurance, all information should be considered before haphazardly making a decision. The majority of the population renting an apartment, condo, town house, or home often don't consider obtaining renter's insurance. Most folks think that any problems that occur are covered by the landlord. While most landlords do insure their properties, this coverage does not protect the renter's contents, only the actual structure. It is also dangerous to take on the mindset that "it will never happen to me". The chances of a serious issue occurring may be slim, however, renter's insurance exists for a reason - it has been needed by many that had it, and unfortunately those that didn't. It's well worth spending a few more dollars to have the peace of mind that if something does occur, valuable items for living are recovered. Before contacting an insurance agent, make an itemized list of everything owned of value. It's essential to list all valuables as only those items listed on a policy will be covered. Don't waste energy overvaluing your belongings because, if an accident occurs, the insurance company will set there value. Begin shopping around for insurance companies. An important question to ask is whether they offer "replacement cost" coverage or "actual cash value" (ACV). In many states, by default, replacement cost rates are quoted. Actual cash value policies cover what your belongings are worth. The insurance company will consider depreciation on all covered items and base payment on what they are actually worth currently, not on what was originally paid, minus deductible. A policy based on replacement cost, however, pays the actual current cost of replacing the item, minus deductible. While replacement cost coverage is more expensive, it provides a higher payout towards damaged valuables. Also, it should be asked if especially valuable items, such as antiques, jewelry, or specialty electronics are covered at replacement cost. Some companies place reimbursement caps on such high value items. If they do impose caps on some of your high value items, you can purchase separate riders that cover the full value. If your rental home is unlivable due to an accident covered by your renter's insurance, it will cover alternate living expenses. Legal expenses and judgements are covered, up to the policy limit, if liability protection is added to the policy should someone have an accident at the home and need treatment or sue. DISCLAIMER: This article is provided as information only and is not to be taken as financial advice. Proactively informing tenants on various subjects related to renting. We own many Tucson rental homes and if you're ever in the Tucson market you can search our homes for rent in Tucson AZ |