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Renters Insurance

Renters Insurance
As a renter, you need insurance to protect your personal belongings. That’s where renters insurance can help. It’s a policy that provides liability and personal property coverage for people who live in a rented space. Your landlord should have insurance that covers the property, but that coverage doesn’t include your personal belongings. If there’s a fire or some other mishap, then you’ll be without help unless you have renters insurance.

Deciding on Coverage
The main point of this coverage is to have insurance for your belongings. Personal property coverage replaces stolen or damaged belongings. The belongings must be damaged during an event such as a fire or robbery. You should determine the value of your belongings before buying a policy. That is because the amount your policy will pay depends on its coverage limits. It’s important to have enough coverage to actually supply the amount you need.

You should also understand that actual cash value pays the current value of the item being replaced. And replacement cost pays the current retail value of the item being replaced. Decide which payment method you’d like to have associated with your policy.

Liability coverage helps if you’re legally responsible for injuring someone. The injury must take place within your rented space. The coverage also pays if you damage someone else’s property. Since there is a limit to liability payments, the entire amount you need might not be covered. There is also an option for additional living expenses. This means the policy will pay for hotel bills or food when you’re temporarily displaced from your rental.

Making a Claim
First of all, your policy must be current before you can file a claim. This means you’ll have to make sure to pay your premiums on time. You’ll also have to pay a deductible before you can receive reimbursement. The deductible depends on your premium. If you pay a lower premium, then you’ll have a higher deductible. But if your premium is on the high side, then your deductible will be lower. Once your claim is verified, the insurance company will proceed to fill the claim.

Coverage Benefits
Renters insurance gives you the benefit of having rental protection. Without it, you’ll receive no type of financial assistance in the event that your belongings are stolen, damaged, or destroyed. You also won’t have liability protection if you find yourself facing a liability lawsuit.