For people who do not intend to stay in a certain neighborhood for a long time, renting a home is the best option. Most people have precious and personal items that have been in their families for a long time and they would love to keep them that way.
It might not be your house, but if some disaster occurred, you would be faced with a certain degree of loss, just as the landlord would. Most tenants do not see the need of having an insurance cover. After all, the property owner has one. What many do not know is that the insurance policies for the homeowners cover only the building and the permanent fixtures. Thus, in case of a theft or natural calamities, the tenants are likely to lose their belongings. It is important to have a cover. Here are some of the tenants’ home insurance policies:
1. Personal belongings cover
This insurance policy takes into account of everything you own. If you were to make a list of all your items and try to assign a value to each of them, you will certainly understand the importance of having coverage for the items. A tenant’s insurance cover of this nature will provide you with coverage from loss, theft or damage to your properties, in the event of storm, fire or any other covered risk. The contents insurance policy for tenants helps to reimburse you to the previous situation. With the coverage, you are able to replace furniture, appliances, clothing and other items. If you have loads of collectibles and pricey jewelry, it will be best if you take an advanced coverage. This will cost you more, but it is worth it. Others that can be covered by a special insurance cover include CDs, family heirlooms, sporting equipments and others.
2. Liability cover
Risks are inevitable and sometimes, they come when we least expect them. It would be too stressful if you had to draw from your savings every time a problem arises. Taking a liability cover can protect you from incurring costs from unprecedented risks. For instance, if a guest is injured in your house and needs medical attention, if the insurance company ascertains that you are responsible for the damage, they will pay for the medical bills and any legal expenses. Hence, when you are purchasing a renter’s insurance, it is vital to evaluate the amount you require to cover eventual risks adequately. Note that the liability cover for tenants can pay even for damages done by you or other family members, accidentally.
3. Extra living expenses coverage
Few people bother to prepare for risks such as fire or natural disasters. For instance, if floods occur or a fire engulfs the building, you may need to find temporary accommodation, maybe in a hotel. This can be a big blow if you do not have a tenant’s insurance policy that gives provisions, for such risks. Where you have insured yourself against unexpected events, you will not have to worry about finding a worthy accommodation for your family and paying for the expenses, which will follow.
Although the tenant’s insurance policies are placed in three broad categories, a wise renter would consider having all of them as they shield the tenant from damages, which may occur in the course of tenancy.
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