If you rent, rather than own, you might think that there's no need for home insurance. However, not having renters coverage could prove to be very costly to you.
While you are not responsible for repairs to the physical structure of your dwelling, you still may need to replace your personal property should a fire or flood occur.
Replacing your personal property is your responsibility if you are robbed. Also, if someone hurts themselves in your home, you could be liable for any injuries they suffer.
Protecting Your Property
When determining how much coverage you need, keep in mind that your possessions, such as old televisions or computers, may have little or no cash value. But if your belongings were destroyed or stolen, it would cost you far more than their cash value to replace them. Replacement, not cash value coverage, gives you a better outcome when you submit a claim.
If you have expensive property, such as antiques, works of art, or jewelry, a separate rider, which is add-on coverage that lists the items and their value, provides the best protection.
Should you need to file claim, it always helps to be able to substantiate the extent of your losses. You can do this by:
These records could easily be destroyed in a fire or flood, so be sure to keep them in a fireproof strongbox. An even better option may be to keep these files somewhere off your premises, such as in a safe deposit box at your local bank.
Even if you're a renter, a guest in your home could still be injured and sue you for medical expenses, pain and suffering, and lost wages. This is where the liability coverage provision of a renters insurance policy could potentially save you from financial disaster, particularly if you have substantial assets to protect.
Paying While You Need to Live Elsewhere
If your residence is so severely damaged that you can't occupy it, you are covered under renters insurance to live elsewhere while repairs are being made. This is particularly important if you work from home, as you may need to find someplace else where you can work and live.
While these are just the basics, the coverage renters insurance provides you should not be overlooked.
Sanford Ellowitz is a New York State licensed insurance agent. He is also a Certified Financial Planner and a Certified Employee Benefit Specialist. He has over 25 years experience in the insurance and financial services industries. His experience includes financial analysis, product development and marketing. He provides insurance planning and product sales.
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