Friday, April 3, 2009

What Does Renters Insurance Cover?

By Lucille Green

Many people do not fully understand the concept of renters insurance but just think how many times you in reality rent equipment like a car, motor home, house or even a boat. Rental insurance covers the repair or renewal costs caused by damage or theft of an item you are renting.

It is a common misconception that the landlords insurance for example, will cover the renter he has in the property.

However, although the landlord does indeed have insurance for his property, it is only for the building itself thus if the structure is broken in any way, his policy will cover the costs.

Personal belongings, equipment, fridges, deep freezers, Tv Sets for example are not covered by this policy and if you are not insured they will have to be replaced out of your own pocket. This can be a bigger problem where any damage to the building is a result of your actions at which point any costs will be the obligation of the tenants.

If that fact doesn't convince you, tenants insurance does have another useful aspect to it. If you consider that a persons welfare is the responsibility of the renter then any accident could result in expensive medical exam bills and even attorneys fees. All medical examination fees and legal costs will be paid for you if necessary therefore it is obviously worth the monthly outlay.

When renting a motorcar you need to check your automobile insurance policy to see if it covers rental automobile insurance as some do offer some rental automobile insurance coverage and quite often, your credit card will pay for damages to a rental automobile in the event of a wreck. If you aren't covered under your own insurance or credit card then you could consider purchasing the collision damage waiver as it is a better option to pay about 7 to 13 dollars a day than 10,000 to 30,000 dollars to replace the letting automobile.

Only two areas of renters insurance has been covered here but it can be obtained for just about anything that you rent and it doesn't matter if you are letting a motor home to a luxury yacht. Renters insurance provides a peace of mind and that has got to be worth a few dollars a day, whoever you are.

The price for letting insurance will depend on many things but be aware that some locations are considered a higher chance and will call for a higher rates and how much deductible is standard will also have a bearing. Take a look around before you decide on what company to apply and try looking on the internet as discounts are often found there and adjust the deductible amount until the insurance rates is within your budget.

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