Renter's insurance protects tenants from the risk of property loss or damage from occurences such as theft, vandalism, fire, and so on. This kind of insurance is designed to fill in the gaping hole in landowner's insurance, in that landowner's insurance does not cover the personal property of the tenant. Tenants in this respect refers to all kinds of people who rent their place of abode, which includes but is not limited to: condominium units, apartments, houses, etc.
The coverage of a renter's insurance policy is very flexible. Renters have the option to determine or limit the value of property to be covered. Tenants can also choose specific items for coverage, for which the premium may be made higher. For an additional premium, tenants can also stipulate additional risks that they would like to be protected against, such as tornadoes, earthquakes, floods, and so on.
Aside from these add-ons, two other factors influence the amount of the premium to be paid. First is the deductible stipulated in the policy. The higher the deductible that the renter will need to cash out in the event of a claim, the lower the premium to be paid, and vice versa. Second is the frequency of the premium payments. Paying regular sums on a monthly basis will ordinarily cost more in the long run thatn paying a single lump-sum annually.
The actual costs of replacing personal property for loss or damage are always significant. Renter's insurance helps ensure that the fruits of your hard-earned income will not just go up in smoke.
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