4 Myths About Renter's Insurance
- From: hiltonfash <hiltonfash@xxxxxxxxx>
- Date: Thu, 28 Feb 2008 16:44:07 -0800 (PST)
If you're wondering what's the big deal about renter's insurance --
like you need another way to spend your monthly paycheck? -- first
consider these common misconceptions:
It's cool -- my landlord's covered. In most cases, a landlord's
insurance covers only structural damage to the building itself--and
many landlord policies don't even go that far if the damage is caused
by a tenant. If you leave the tub running and it turns your floor into
cardboard and dribbles downstairs, damaging your neighbor's couch, you
may be liable for the whole drippy mess. If your building went up in
flames, your landlord's coverage would include repairs, but only to
the building, not to the possessions of tenants.
It's out of my price range. Is $10 to $20 per month too much? In March
of 2002, unofficial online quotes from two major carriers produced
annual rates of $147 ($12.25 per month) and $203 (under $17 monthly)
respectively. Both quotes were for a fictional five-room house in
Boulder, Colorado, covering the basics for "standard" personal
property valued at $35,700 (the automated figure produced by one
company). Both quotes had a deductible of $500 per incident, and
included medical coverage for others, on-premise or off-premise.
Assumptions were that the house contained a smoke alarm and fire
extinguishers. For lower rates, you can raise the deductible; for more
protection, you can pay more for replacement cost coverage, in which
reimbursement is based on today's replacement cost rather than
original value.
I'm in a great building, and I'm not worried about security. Renter's
insurance extends beyond on-premise theft and hazards. If your
suitcase is stolen while you're on vacation, you'll likely be covered.
Same with property stolen from your car. If you're prone to barroom
brawls--well, you might need more help than renter's insurance, but
you'll probably be covered if you hurt someone. Speaking of injuries,
you'll also likely be protected if someone slips and sprains their
ankle at your annual dance-a-thon; you may even receive compensation
for legal defense costs in the case of a lawsuit.
My stuff isn't really worth much. You might be surprised at how
quickly all those books, CDs, and kitchen appliances add up. According
to StateFarm.com, most people own more than $20,000 worth of property.
Refer to the lists in this article to make an inventory of your
possessions prior to contacting an insurance carrier for a quote. List
each item along with its year of purchase and what you think it would
cost to replace it today.
http://rentersinsurancesearch.blogspot.com
.
- Prev by Date: Re: REPOST: Contract Rights Don't Exist
- Next by Date: Re: Buy 24" monitor?
- Previous by thread: REPOST: Contract Rights Don't Exist
- Next by thread: Russia's Central Bank suffers losses in U.S. mortgage crisis
- Index(es):
Relevant Pages
|
