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Renters Insurance 101
It's all about protecting your property While your landlord has homeowners insurance coverage
for the physical dwelling, as a renter, you need insurance to cover your
personal property, such as clothing, furniture or electronic equipment, in
the event of loss from fire or theft or other perils. Renter's insurance will also protect you if you are
responsible for bodily injury or property damage to others, for example, if a
visitor trips over a rug and breaks a leg. Read on the find out more about the protection offered
by renters insurance: While your landlord should have insurance coverage for
the building in which you live, you need to be aware that that coverage does
not extend to protect your personal possessions. Renters insurance provides
protection for your furniture and personal possessions - at home or away from
home - against damage from such hazards as fire, lightning, windstorm, hail,
explosion, smoke, vandalism, and plumbing leakage. A renters
policy also protects your property against practically every type of theft
loss in your apartment or anywhere in the world. This personal property coverage is also called contents
coverage since it insures the contents of your apartment. You determine the
value of your property and the renters premium is
based on this amount. An Insurance Corner agent can help you if you have questions
as to the amount of personal property coverage that's right for you. Or, you
can use our Personal Property
Worksheet if you'd like to figure it out on your own. Since each of us enjoys a unique lifestyle, you may
require special coverages for your individual
needs. The following coverages can be purchased
separately: · Contents Replacement Cost: pays full cost to repair or replace most personal property
in your apartment with no deduction for depreciation. · Valuable Items Plus: provides higher limits and worldwide protection for special
property such as jewelry, silverware, fine art, furs, cameras, firearms,
musical instruments, and home computers for an extended variety of losses.
For your convenience, no appraisal or listing of insured items is required. · Additional Coverage
Endorsement (ACE): extends protection or increases
limits on special types of property (for example: jewelry, firearms, or
silverware). This coverage also increases personal liability coverage by
$100,000 and includes coverage for personal injury. Stuff happens...and sometimes it's not always good. In
the event that you are sued, your renter's personal liability protection
helps to cover the associated legal costs and related damages. Most renters policies provide $100,000 (minimum) of
financial protection against liability claims and lawsuits brought by others
for accidental bodily injury or damage to their property: ·
while in your apartment · caused by your personal activities,
including most sports · caused by your children or pets. Liability protection also includes medical payments coverage. For
example, some carriers will pay up to $1,000 per person -- regardless of your
legal responsibility -- when an accident involves bodily injury to others.
Higher amounts of coverage are available. If you are forced out of your apartment by a covered
hazard, your policy will pay you up to 20% of the contents coverage for
necessary additional living expenses (hotel, meals, laundry, etc.) while your
damaged apartment is being repaired.
Many renters spend considerable time and money on
alterations or redecorating. Under a renters policy,
you may apply up to 10% of your contents coverage to repair or replace these
damaged improvements.
This feature protects you if you're held legally
responsible for any fire damage to the building in which you live. And this
coverage not only protects your home, but also any vacation property you
rent.
Renters insurance automatically provides you with up to
$1,000 of coverage (in most states) for losses resulting from forgery or any
alteration made in connection with credit cards, automated teller cards, and
checks used by you and your family.
A deductible is the amount of loss you agree to assume
before your insurance coverage takes over. The higher your deductible, the
lower the cost of your policy premium. The deductible applies to property
losses only. Liability protection does not require a deductible.
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