The Real Value of a Renter’s policy

A renter’s insurance policy is a very affordable policy with lots of great coverages. Most people tend to think of a renter’s policy as offering coverage for their “stuff”. If you have a fire in your apartment your renter’s policy will pay to replace your tv, Ipod, furniture, clothes, etc. While that coverage is great, the true value lies in the liability protection.

Let’s say you accidently leave a candle burning in your kitchen and it causes a fire that not only damages your aprtment, but also 3 or 4 units surrounding yours. The building damage that occurs will be paid for by the landlord’s building insurance comany. But if they find that you were the one who caused the damage they will sue you for the damages.

Do you have $50,000, $100,000 or $200,000 to pay for the resulting damage caused by your candle? I know I don’t. If you have a renter’s insurance policy the liability portion of your policy would provide coverage for you. Your renter’ insurance policy would defend you in this claim.

How much would you pay for such  a valuable insurance policy…$400, $500, $1,000? How about around $200 a year for $25,000 in contents and $500,000 in liability? And you thought insurance was expensive?

The above is meant as general information and as general policy descriptions to help you understand the different types of coverages available to you. Always consult your policy for actual coverages and exclusions.

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