Renters insurance can help alleviate the
financial burden you would have if your
possessions were destroyed or stolen - or if
someone were injured on or off your property
through your negligence. Renters insurance is the
type of coverage most overlooked by consumers.
Renters Insurance
Renters insurance provides worldwide coverage
for your personal property in your home, apartment
or elsewhere such as storage or in your vehicle.
You are also protected for damage caused by
certain perils named in the policy. Read your
policy closely to ensure that you have adequate
coverage
before a loss occurs.
Do not assume your landlord's insurance will
protect your possessions. Landlords usually
carry insurance only on the building itself.
You need renters insurance if:
- You are a student and have limited
coverage on your parents' homeowners insurance
policy.
- You do not own a home that is covered by a
homeowners insurance policy.
- You live in military housing. The federal
government or privatized housing provider may
provide minimal, limited coverage for your
personal possessions if they are damaged or
stolen from your quarters. Your personal
possessions are your responsibility. Determine
the limits and extent of your coverage. You
may need supplemental coverage to fully
protect your assets.
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Coverage
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Description
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Personal Property
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- May be purchased to cover named types
of losses - named perils.
- Named perils policies cover property
only if it is stolen or damaged by a
cause named in the policy.
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Liability
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- Provides coverage for claims or
lawsuits filed against you by others who
are injured or
have property damaged as the result of
negligent acts by you, your family or
your pets. Most standard policies
provide $100,000 in coverage, but many
insurance professionals recommend a
minimum of $300,000. This does not
include liability coverage
as a result of an automobile
accident.
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Medical Payments
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- Pays for medical expenses of individuals who do not live with you but are accidentally injured
in your home or as a result of your
actions away from your home. Medical
payment coverage does not require you to
be legally liable for the injur-ies in
order to pay for medical expenses. For
example, if a visitor slips on a rug and
breaks a leg, the medical payments
coverage from your policy would pay any
medical expenses up to the limit. The
standard amount of medical payments
coverage is either $1,000 or $5,000.
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About Premiums
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When purchasing a renters policy, you
may choose how the insurance company will
assess the value of your property.
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Actual Cash Value (ACV) Policies
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- Replaces your damaged or stolen
property minus a deduction for
depreciation.
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Replacement Cost Policies
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- Replaces your damaged or stolen
property at the price you have to pay
when you replace or repair it. These
policies are more expensive. To claim
replacement cost, you must actually
replace or repair the item.
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To Reduce Your Premiums
Raise your deductible.
Maintain a good credit rating.
Possessions Inventory: To
file an insurance claim, you have to list
everything lost to fire, theft or
any other covered loss. If you tried to remember everything you lost, you would
probably miss some things and get a smaller payment than you were entitled to
from your insurance company.
Use the Inventory Work Sheet
to list all your possessions. It is valuable in determining how
much coverage for personal property is needed.
Retain all receipts, since some insurance companies may require them for
documentation. Keep a master list of the serial numbers and original prices.
Consider photographing your personal possessions. Store a copy of the inventory,
the receipts and photographs
in a safe deposit box at your financial institution or in another secure location away from your residence.
You should also store a hard copy of important online documents. Another option is to scan
the information to a disk and store it appropriately.
Periodically you should review your
personal property to insure adequate
coverage. High value items such as
jewelry should be scheduled
separately.
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Selling A Home
Selling A Home
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