Renters Insurance Protection Plans

By Richard Farrell
Special to USInsurance.com

As a renter, it is your responsibility to insure that your belongings are protected since a landlord or property owner won't cover them. When living in an apartment, renters should consider renters insurance, which underwrites your personal property against damage or loss caused by theft, or other specified events. Many policies also include cover in case a third party is injured while visiting you at home.

Why You Need Renters Insurance:

For an amount as low as $20 a month you can buy peace of mind, and indemnity from having to pay for a new computer, television or clothes yourself in case they get lost or damaged. If you think you do not need this insurance, then first work out how much it could cost to replace all those things, and where you would find the money.

What Events Renters Insurance Covers:

Renters insurance normally covers you against loss or damage arising from any of the following occurrences (although individual insurance policies may vary in the details):

• Electrical Damage
• Explosion
• Falling Objects
• Fire
• Riots and Civil Commotion
• Theft
• Vandalism
• Vehicles and Aircraft
• Water Damage
• Weather Damage

Your personal property may also be covered if it is stolen from your car or away from home.

Further Information:

Renters insurance offers a smorgasbord of choices that allow you to pick the bits you need to save you money. These modules usually include

Personal property cover – your personal possessions such as jewelry, clothing, furniture, electronic equipment etc

Additional living expenses – what you have to pay to live elsewhere if your rented home becomes uninhabitable, say due to fire, ongoing theft or vandalism.

Personal liability – cover in case a third party visitor is injured at your property, and holds you responsible.

Hurricane and flood damage may not be covered. You must check this detail carefully before signing.

Other Things to Think About:

Insurance policies are like motor cars. Every one is different and prices vary too. As a general rule if you buy cheap then cheap is what you get, usually in the form of high first payments and drawn-out settlement terms. It can also be a false economy to go direct instead of using a good broker. That’s because a good broker should not cost you anything extra, and will fight hard for you if you have a renter’s insurance claim.

You must also always read the small print carefully. The fact that you cannot test-drive an insurance policy or arrange a demo is good enough reason to check the wording out carefully, don’t you think?

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