| It is one
of the most commonly repeated myths about insurance.
Renters don't need insurance because their landlord's
policy provides coverage for the renters' property.
No, it doesn't. Further, if someone slips and
falls in your apartment or rented home, your
landlord's insurance usually won't provide any
coverage for you if you are sued.
Renters insurance is basically like homeowners
coverage without coverage for the structure.
Note. Renters insurance provides
coverage for your possessions and for liability
if you are sued by someone injured while on
your premises. Renters insurance also covers
any of your possessions when they are away from
your residence, including in your car.
In addition, renters policies provide what
are called additional living expenses. If some
catastrophe covered by the policy - fire, tornado
- makes the place you are renting uninhabitable,
the policy will pay some of the costs you incur
to live somewhere else while the residence is
being repaired.
The coverage is usually limited to either a
specific period of time, say 12 months, or what
the insurance company considers a "reasonable
length of time." Also, there is a cap on
the amount of additional living expenses the
insurer will pay, usually a percentage of the
total property limit.
Like homeowners insurance, renters policies
do not cover damage or losses resulting from
flooding, landslide or earthquake - although
it is possible to buy coverage for these risks
separately.
Tip. Like homeowners, you
as a renter should have a written and visual
inventory of all of your possessions. For items
of significant value, you should write down
the model numbers, serial numbers, date of purchase
and price. Make a written copy of your inventory
and keep it at another location, along with
your photographs and/or video of the items.
A safe deposit box is a good place to keep such
records.
Note. If one of your "possessions"
is a dog, you may find it more difficult to
get coverage, particularly if that dog is a
Rottweiler, Pit Bull or Doberman.
Tip. Finally, remember that
many insurance companies give discounts to those
who have multiple policies with a given insurer.
Shop around, or have your agent shop around,
for insurance companies that have the best rates,
discounts, etc., for renters and auto insurance
if both are placed with the same company.
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