Discover 101 Amazing Real Estate Tips and Secrets
About Rental Insurance
Many renters don’t stop to think about what happens if there is a fire, someone breaks in and
steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; you
will be responsible! While your landlord has
insurance that covers the actual building, that coverage does not include your personal
property or liability for injuries which occur in the space you rent ~ be it an apartment or a
house and yard.
If a fire should destroy or damage your home, your landlord’s insurance will cover the
structure. It won’t cover damage or loss of your belongings. Neither will it provide for the cost
of temporary housing for you and your family.
You may think you don’t own enough personal property to make the cost of insurance
worthwhile. You’re probably wrong! If you sit down and add up the cost of everything you own,
you may be in for a big surprise. Consider what you have invested in such things as:
• Furniture and accessories
• Electronics like TV, stereo, computers
• Small appliances like microwaves, toaster ovens, etc.
• Art work like paintings or prints
• Dishes, silverware and cookware
• Sporting equipment
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your property and decides to sue you
for medical costs and more? It’s a scary thought, isn’t it?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
• The dollar amount of your coverage
• Whether you choose to be reimbursed for Actual Cash Value or Replacement Costs (more
about that in a minute)
• Where your rental property is located and the number of previous claims made, not only by
you, but by others living in the same area.
Let me explain the difference between Actual Cash Value (ACV) and Replacement Costs. ACV
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