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What Kinds Of Rented Property Insurance Should One Take?
There is a common misconception amongst most people that rented property insurance is not important since their property and belongings are not valuable enough. This form of insurance allows the tenants to protect their personal properties and belongings against various perils such as vandalism, theft or fire. The article talks about the benefits of rented property insurance.
One of the main reasons why rental properties do not qualify for homeowners insurance policies is because insurance companies need to face greater risks since they cannot underwrite the individuals who live in the house as the house is not owner occupied. However, the need and the demand for rented property insurance has led to most insurance companies coming up with customized plans for tenant occupied properties. These policies provide most of the benefits which are offered in homeowner insurance policies with the exception to coverage for the house or dwelling.
Almost all rental insurances include replacement coverage as well as liability coverage. The replacement coverage allows tenants to replace their belongings in an adequate manner ...
... by providing them with an adequate sum to buy a reasonably equivalent replacement. For example, if a tenant lost an old 14 inch television due to theft, they would be provided with a sum which would be enough to purchase a similar new 14 inch television from the markets. The main concept of replacement coverage is not to upgrade one's property, but to allow individuals to return to the same financial condition they were in before the loss.
The liability coverage further helps in the protection of the tenant from financial losses that might otherwise be incurred if someone gets injured in the rented unit. With the help of this coverage, the tenant will not have to pay for the medical costs due to injuries that may be inflicted upon the guests on the rental property since the insurance company would be taking care of it. This flexibility allows tenants to live in peace knowing that their belongings are secure and that they are protected from accidental damages as well.
These rented property insurance cover also offers tenants with options to choose their coverage plans. The most common coverage can be divided into 3 categories - basic, broad, and all inclusive.
The basic coverage plan normally includes insurance coverage against perils such as theft, vandalism, storm damage and fire. The broad coverage plan includes coverage against accidental discharge of water, burglary, freezing and collapse along with all coverage for all the perils which are included in the basic category. Finally, the all-inclusive coverage plan includes every sort of peril that exists unless they have been specifically excluded in the policy terms.
Thus, the ideal solution when it comes to rental properties is that the homeowners should purchase the homeowners insurance policy while the tenants should purchase the renters policy. This allows the homeowners to protect the property against perils without having any monetary interest in the tenant’s valuables while the tenant can protect their goods and belongings without having any sort of monetary interest in their landlord's property.
Author of the article is associated with discountlandlord.co.uk, the online insurance broker that provides the most competitive rates for residential and commercial property insurance.
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