| A renters insurance policy protects the contents | | | | antique should be declared at the time of |
| of a rented property against losses incurred due | | | | purchase as separate policies or rider policies |
| to theft, fire or damage due to a hurricane and | | | | might need to be issued for these items. If highly |
| other natural disasters. Renters insurance also | | | | expensive items are not declared, the |
| offers protection for liability. It pays for liability for | | | | policy-holder will not be able to recover the |
| accidents, such as a visitor slipping on your floor | | | | possible losses pertaining to these items. |
| and breaking an arm. This type of insurance is | | | | It is wise to inventory all the belongings to ensure |
| primarily designed to protect consumers from | | | | adequate compensation for loss. The inventory |
| unexpected financial hardships. | | | | should include the value and serial number of |
| Renters policies specifically state what it insures | | | | every item. Policy-holders should also keep the |
| against. There is a standard set of named perils | | | | receipts of expensive items in another place, |
| covered by a renters insurance policy. Some of | | | | preferably outside of the house to ensure proper |
| them are fire, lightning, windstorm, smoke, | | | | documentation and safekeeping. |
| vandalism or malicious mischief, theft and | | | | If the dwelling becomes uninhabitable due to a |
| accidental discharge of water due to a burst pipe. | | | | burst pipe or a fire, the insurance policy will pay |
| It can also include payment for the medical | | | | for additional living expenses. Certain types of |
| expenses of non-residents. Floods and | | | | rented property have additional benefits. |
| earthquakes are oftentimes purchased separately | | | | Condominium units usually come with a waterbed |
| from the renters policy in coastal areas and | | | | liability provision so that in the event that a |
| places prone to either. In most cases, windstorm | | | | waterbed bursts, the policy will cover the water |
| coverage is also purchased as a rider to the main | | | | damage caused to the unit under the |
| renters policy. | | | | policy-holder's package. In terms of pets, there |
| Renters policies use two methods of valuation of | | | | are insurance providers that do not underwrite |
| the home contents, these are the actual cash | | | | renters policies for customers owning certain dog |
| value and the replacement cost. The actual cash | | | | breeds. |
| value pays only for what the belongings were | | | | A renters insurance policy is an effective way of |
| worth at the time of the loss. A household | | | | protecting the property and its occupants from |
| appliance worth about $500 three years before | | | | unforeseen expenses. Paying for the rent might |
| will cost significantly lower at the time of loss. On | | | | take its toll on a person's purse and making sure |
| the other hand, the replacement cost will | | | | that no additional and unexpected expense comes |
| reimburse policy-holders for the actual cost of the | | | | one's way to add more financial burden would be |
| property at the time of the loss. | | | | a wise move. |
| Highly expensive items such as jewelry and | | | | |