Home » Finance » Insurance

What Are the Components of a Renters Insurance Policy?

Aug 17, 2007
A renters insurance policy protects the contents of a rented property against losses incurred due to theft, fire or damage due to a hurricane and other natural disasters. Renters insurance also offers protection for liability. It pays for liability for accidents, such as a visitor slipping on your floor and breaking an arm. This type of insurance is primarily designed to protect consumers from unexpected financial hardships.

Renters policies specifically state what it insures against. There is a standard set of named perils covered by a renters insurance policy. Some of them are fire, lightning, windstorm, smoke, vandalism or malicious mischief, theft and accidental discharge of water due to a burst pipe. It can also include payment for the medical expenses of non-residents. Floods and earthquakes are oftentimes purchased separately from the renters policy in coastal areas and places prone to either. In most cases, windstorm coverage is also purchased as a rider to the main renters policy.

Renters policies use two methods of valuation of the home contents, these are the actual cash value and the replacement cost. The actual cash value pays only for what the belongings were worth at the time of the loss. A household appliance worth about $500 three years before will cost significantly lower at the time of loss. On the other hand, the replacement cost will reimburse policy-holders for the actual cost of the property at the time of the loss.

Highly expensive items such as jewelry and antique should be declared at the time of purchase as separate policies or rider policies might need to be issued for these items. If highly expensive items are not declared, the policy-holder will not be able to recover the possible losses pertaining to these items.

It is wise to inventory all the belongings to ensure adequate compensation for loss. The inventory should include the value and serial number of every item. Policy-holders should also keep the receipts of expensive items in another place, preferably outside of the house to ensure proper documentation and safekeeping.

If the dwelling becomes uninhabitable due to a burst pipe or a fire, the insurance policy will pay for additional living expenses. Certain types of rented property have additional benefits. Condominium units usually come with a waterbed liability provision so that in the event that a waterbed bursts, the policy will cover the water damage caused to the unit under the policy-holder's package. In terms of pets, there are insurance providers that do not underwrite renters policies for customers owning certain dog breeds.

A renters insurance policy is an effective way of protecting the property and its occupants from unforeseen expenses. Paying for the rent might take its toll on a person's purse and making sure that no additional and unexpected expense comes one's way to add more financial burden would be a wise move.
About the Author
Insurenters.com provides you with information on renters insurance related issues like renters insurance policy , the pitfalls and the best tips. We help you find your renters insurance. http://www.insurenters.com/
Rating:
Please Rate:
(Average: Not rated)
Views: 153
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources