What is Renters Insurance?
When you buy a home, you are told immediately that insurance is required before you can close and obtain rights to the property. Many times it is included in the escrow so you can pay it along with your mortgage payment and never have a separate bill. In the case of renting, you may not be aware that renters insurance from companies like Geico.com or Esurance Auto Insurance even exists, let along that you need it. If you are like many people, your thoughts go to the land lord; he owns the property so therefore he has insurance and your covered, right? Wrong! The truth is, if the building burns down, is flooded or has any other structural damage, it is covered, but your belongings are not.
When You Need Renters Insurance
You need renters insurance any time you are renting a property. All of your belongings are inside the home and in case of an accident, disaster or other damage, you risk losing everything and not being reimbursed. So, if you rent, get renters insurance--no questions about it!
Price of Renters Insurance
Renters insurance is very affordable--usually less than your water or trash bill each month. If something happens and you lose your belongings, think about what it would cost to replace them--clothes, electronics, furniture, tools, etc. In comparison to the cost of replacing your valuables, the cost of renters insurance is next to nothing. Since renters insurance does not have to cover the structure of the property, your land lord already carries that policy the cost is much lower than owner's property insurance.
Many times, your land lord will have his policy to cover only the structure of the building or home and have a clause that any belongings or valuables inside are not covered; this helps to save him money on his policy, and even if he had coverage for belongings, it is not like you would ever see that money. He is not going to file that claim and cause his rates to go up. You really cannot afford to not have the insurance in case of damage or an accident that causes you loss.
What Renters Insurance Covers
Renters insurance works the same way home insurance does; you are protected against loss of your belongings due to a fire, theft, floods or water damage, even if someone is injured while they are in your home.
Even if you think that you don't have enough valuable belongings to cover, the truth is, yes you do. Think about everything you own--everything that is inside your home or garage--start calculating what it would cost to replace it all. Even though you may not own rare paintings and fine crystal, clothing, iPods, phones, televisions, DVD's, furniture, appliances, tools, sporting equipment, jewelry and other collectibles are all worth money and are all expensive to replace.
You also have to consider that your renter's insurance policy will cover any medical expenses for those injured on your property that does not live with you. If for instance, someone slips and falls in your home and files a claim for medical expenses, how are you going to pay for that and is it worth taking the chance on not having coverage?
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Robin Burton is a freelance writer for <a rel="nofollow" href="http://www.ultimatecoupons.com/">UltimateCoupons.com</a>
Article Source: ArticlesBase.com
