 Sam
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Location: CALIFORNIA
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 Posted: Sun Apr 04, 2004 10:56 pm Post subject: Renters Insurance |
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Renters Insurance is a policy that pays for replacement of possessions, and not for loss or damage to real estate. But some items like jewellery, computers, and expensive cameras etc. are often subject to a per-category theft limit. For example, there are computers for which some policies have a limit of $5,000.
Renter's insurance not only protects your personal items but also provides temporary housing and liability protection including medical expenses for lawyers who carry out legal procedures for your property.
While purchasing home renter's insurance, one should consider the following points that may affect the price and coverage of the policy.
- Coverage for Dollar amount - A fixed amount will be determined on your total possession instead of placing a dollar amount on each individual piece of property. The policy value gets higher as you purchase a greater coverage.
- Deduction: Generally, all coverages except liability coverage like medical expense are subject to deduction.
- Reimbursement of Cost: The insurance company reimburses you for your property either through replacement cost or in Actual cash value(ACV). A basic policy reimburses ACV that is the value of the property at the time of loss.But if you choose replacement cost, the company will pay the actual replacement cost. For example, your 5-year old TV will be replaced with the cash required to purchase a new TV.
- Previous Claim: The cost of policy is likely to be affected,in case of any large amount of claim made by you or your neighbour earlier.
- Location: You will probably pay more for your insurance, if you rent in an area prone to thefts.
Location.
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