Do You Really Need Renters Property Insurance?

Do You Really Need Renters Property Insurance?

If a person is renting a house, an apartment or a condominium unit, the renters property insurance will cover the losses sustained by his or her personal property. The landlord’s policy, also called the commercial property insurance, covers only the physical dwelling or the house itself. It does not insure all the contents of the house against fire, theft, flood and other natural disasters. These concerns are left to a renters property package to cover. Also called the tenant’s policy, this insurance product offers liability protection covering unintentional bodily injury or property damage caused by the home contents to others.

Unlike the landlord’s policy, the renters property insurance is inexpensive if you consider the amount of money and property one stands to lose in the event of a fire, theft or a national disaster. This type of policy offers tenants a means of protecting themselves against unexpected financial difficulties.

A renters’ policy covers named perils. This simply means that the policy specifies what a policy-holder is insured against. Some of the more popular named perils are fire, theft, vandalism or malicious mischief. Some companies bundle coverage for national disasters under the heading allied perils, which can include lightning, flood, windstorm and earthquake.

Renters need to clarify whether their policy includes actual cash value or replacement cost. Actual cash value offers to pay for the cost of the property