Personal Liability Coverage

Category: Finance.

Many renters are under the false impression that the insurance their renter has on the home is enough to cover any losses within it.

However, the insurance that the landlord holds on the property is only for the structure itself and not for the contents within it. These can losses can be a result of anything ranging from theft to fire or another catastrophe such as earthquake or tornado. That is why it is very important for renters to acquire renters insurance to protect their belongings. These are: Coverage of personal property. There are three kinds of coverage provided by renters insurance. This coverage replaces personal property in instances in which it has been stolen, damaged by fire, vandalized, smoke, or damaged through, or windstorms leaks in the plumbing and even explosions.

In order for the renter to determine how much insurance is enough, they should do an inventory of all belongings such as furniture, electronics, clothes, appliances, kitchen utensils, tools, sports equipment, and then total, and other items up the value of this property in order to determine how much money would need to be paid out if something were to happen to these items. Some of the more expensive items such as furs, and jewelry may, silver not be covered by the insurance policy, so it is possible that additional insurance may need to be purchased in order to cover these items if the renter prefers to do so. This will determine how much coverage is needed and will also determine the amount of the premium that is paid monthly, every six months, quarterly, or yearly. This second type of renters insurance coverage pays for the renter to live elsewhere if the home is in a condition in which it cannot be lived in while it is being repaired after some sort of damage has occurred. Coverage for additional living expenses. This insurance covers the cost of the hotel or motel room, restaurant bills from having to eat out all of the time as a result of not being able to inhabit the home, and any other expenses that may occur as a result of the situation. What this means is that if the coverage is$ 100, then the renter, 000 is covered up to$ 50, 000 if the policy allows for the maximum of 50% .

This coverage is usually equal to 30% to 50% of the amount of the policy. If not, then a minimum of$ 30, 000 in living expenses are covered. Personal liability coverage. This can actually pay the living expenses of the insured for quite some time. This is the coverage that can protect the insured from such unfortunate events as lawsuits. Most choose to get the$ 100, 000 coverage in order to protect their belongings.

This insurance comes in handy if the renter is found to be liable for damaging someone s property or injuring someone and should cover the amount of all assets if the renter is sued. Why is this important to the renter? An accident can occur on the property that is the renter s fault or can happen at any other location. Well, it is important to everyone since accidents do happen. It is good to have all assets and belongings protection in case such an event occurs. If the renter is robbed or some other unfortunate event occurs, it is great to have that coverage in place rather than be in the situation of having to start all over with their own cash. So this is why it is important to have renters insurance.

This can make living much easier when a disaster occurs.

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