Renters Policy
Saturday, July 10th, 2010
Some people may ask, “If I only rent a house or an apartment, will it still be advisable for me to have insurance?”
The answer is yes. Even if you don’t own a house, it is still likely that you own personal items that are valuable to you. These valuable items might be too expensive for it to be easily replaced whenever it is damaged or stolen. In addition, you have to legal liability to any person who gets injured on the property that you are occupying. If there is a Homeowner’s policy, there is also a “Renter’s Policy”. This is essentially similar to Homeowners Policy minus the coverage for the structures or buildings. With this taken out of the equation, the Renters Policy is way cheaper than Homeowners Policy.
In deciding how much actual property insurance you need, it is wise to look at two things before deciding; replacement cost and current market value. The usual practice is to insure the property for the market value or appraised amount, however, in many cases this is not enough because this amount is influenced by outside forces that are most of the time beyond the control of property owners. That is why you need to take a look at replacement cost. Think of all the added items placed in the property since it was bought and take into consideration a worst case scenario, like your property burned to the grown and nothing but the land is left. How much would it cost to rebuild your property to the state it was before the accident in the shortest possible time? How about the lost income, if any, from your property that will stop because of the accident? Thinking of all these conditions will give you a better appreciation of the actual amount of property insurance you need.
Determining your insurance premiums depend mostly on the frequent perils or risks your business encounters on a normal basis. Understanding statistical risks associated with your line of business is the job of insurance providers and based on this assessment, they can adjust policies to provide for greater protection. The primary factor in setting premiums include building structure type, safety measures in place and the location of the property to various high risk areas.
There are different types and levels of property insurance coverage available in the market. Knowing how to properly protect your property from theft, fire and other perils will go a long way in securing your prized possessions. Property insurance can be specific to your needs as a business enterprise.
For everyone’s awareness, let me emphasize that there is no law that requires homeowners to apply for an insurance policy program. In contrast to this, if a homeowner borrows money from a banking or loan company to buy a house, the lending company will need to take a particular deed of trust or mortgage to be able to protect its interests that will stretch up to the day where the loan has been fully repaid. This certain mortgage will require homeowners to have an adequate amount of insurance to cover the reconstruction or repair of the house that was bought.
In claiming an insurance, when your house was involved in a fire or whatever circumstances that your valuables were lost, your insurance company most certainly will require you to submit a list of all the lost or destroyed items. Your up-to-date personal property home inventory should come in handy at this point in time. Personal properties include furniture, appliances, electronic gadgets, jewelries, clothing, among others that you consider your own. If you have a list of these valuables, you will have an idea on how much you should get as coverage amount or if there is a need for an increased replacement cost coverage.

