1st March 2010
Many individuals who are renting a home think that if something goes wrong the owner of the home is completely at fault and responsible. However, they would be surprised to find that they are wrong. The home owner is not completely responsible for all of the damages. This is why renter’s insurance is an important aspect for anyone who rents.
One part to think about is the fact that everything you own is in that home. The owner of the home is not responsible for your things. Sure, they will be the one responsible for taking care of any damage done to the building. However, they will not be responsible for your items that were within the home. The cost of replacing all of those items could become very pricey. Chances are you do not have the cash on hand to replace everything. This is why insurance comes in handy to those who rent.
Determining how much coverage you need is not an easy thing to do. You actually have to sit down and think of an amount of money you think would suffice to pay for all of your property. To do this, sit down and go through everything in your home and write it all down. Beside each item write down a dollar amount that it would take to replace that item. Many people are tempted to overestimate. However, it is very important not to do so because your premium directly relates to your estimate.
Renter’s insurance does not just cover your property though. It also does other things. First of all, it has legal benefits. For example, if someone were to fall or get bitten by one of your animals at your home it would cover that. This way if you are sued by them you are protected. It will cover the legal costs as well as any cash you may have to pay out to cover the claim and/or injuries.
Another great aspect of this insurance is that it will cover alternate living expenses if there is an accident. For example, if you have a fire it is obvious that you cannot move back in the very next day. You have to wait for everything to be repaired. Because of this you will need to find somewhere else to stay. Renter’s insurance will cover you living expenses, most of the time, while you wait for the repairs to be finished.
So while everyone knows that accidents can happen. A fire could burn a home down, a tornado could tear it down, or your dog could bite a neighbor. What many people do not know is that a home owner is only responsible for the damage done to the home. If all of a renter’s property burns with the house, blows away in the tornado, or their dog bites the neighbor they are responsible. Renter’s insurance is a safety net for these situations. It can be the determining factor of whether you end up broke with nowhere to live or fine with everything you need. Investing in this insurance is always a good idea.