It doesn’t matter weather you own or rent your home, weather you are rich or poor, weather you live in town or out in the country, everything you have is wrapped up in your home and if something happens to your home then your are at risk of loosing everything. That is why the world invented homeowner’s insurance. If you don’t own your home you still need a homeowner’s policy – a renter’s policy.
Renters insurance provides the protection that you need if there is a loss or destruction of your property when you rent a house or apartment. The owner of the property, your landlord, may be sympathetic to a burglary, or fire caused by your iron, but the loss of your possessions is not usually covered by your landlord’s insurance and he is not legally responsible for it. The good news is that because renters insurance covers only the value of your belongings, not the physical building, the premium is relatively inexpensive.
Renters insurance covers your possessions against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage (not including floods), and it will also cover your personal liability: your responsibility to other people injured at your home or elsewhere by you, a family member or your pet and pays legal defense costs if you are taken to court.
Don’t let anybody ever try to sell you anything but a replacement cost insurance policy. If you buy anything that does not specifically state “replacement cost” coverage you will be paid garage sale value for your property. In other words, that sofa that you bought six months ago for three thousand dollars will be valued at about three hundred dollars. Let me repeat: Replacement cost coverage only.
In future posts I’ll talk about the value of a floater – purchasing additional coverage for a specific item: wedding ring, art, ect.