Renter's Insurance

Many renters make the terrible mistake of thinking they don't need house insurance, so they don't obtain renter’s insurance on their home and its contents. Persons without this insurance put themselves and their financial future at risk.

The reason that a person needs renters insurance is an obvious one: to replace all the contents of his home. The average person simply does not have the financial resources to do so without insurance. Renter’s insurance exists to give a person the funds to pay for all of his belongings if they are destroyed in a catastrophe, such as a fire.

The major difference between renters insurance and home insurance is that renter’s insurance does not pay for the replacement of the home itself. Nor does it pay for repairs to the home; instead it merely pays to replace the possessions of the renter.

Renters Are Not Insured by Their Landlords
Many renters mistakenly believe that their landlord is obligated to replace their possessions in case of a fire or accident. Nothing could be further from the truth: the landlord is only liable for those expenses if he caused the damage through negligence or a deliberate act.

In such a case, a renter would probably have to sue the landlord to recover damages. Such an action could take months and cost thousands of dollars if the renter has to hire an attorney. Even then the renter takes the risk that he will lose in court. There is also the problem of collecting the judgment, something that can be very difficult to do if the landlord refuses to pay.

Renters insurance will give the renter a check to cover the damages within a few days or weeks of the crisis. It should also cover the costs of finding other housing and will enable the renter to proceed with his life.

General Liability Insurance for Renters

There is also another reason why renters need to obtain renter's insurance on their homes: renters can actually be sued and held liable for accidents that occur in their homes.

If somebody is injured in an accident in a rental unit, there is a strong possibility that the renter could be held liable. This means that a renter can face a lawsuit if somebody trips and falls in her home.

Unfortunately, the landlord’s insurance will only cover the situation if the landlord is found to be at fault. Fortunately for renters the standard renter’s insurance policy contains the needed general liability insurance coverage. No renter can afford to be without renter’s insurance.

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