We Rent, So Why Do We Need Insurance?
This case is about a couple who had a loss to some personal property in their basement due to a flood. Luckily they had renters insurance. It is important for people to have renters insurance for reasons just like this. Even though the property that was damaged was extra furniture, it would still be a great expense if they chose to replace it. Imagine there was a fire in your home and everything you owned was damage. It would cost thousands and thousands to replace all these necessary items. Insurance is preparation for accidental loss. Some people say that it will never happen to them because they never leave candles lit or leave their windows open. But a disaster could happen and it not is your fault. Say you live in an apartment complex and the person next door causes a fire because of their negligence. You are still the one responsible for replacing all your personal property. Even though your landlord or property manager has insurance, it is not going to cover your property; it is only going to cover theirs. Their insurance will be coverage for the home or building only. It is their responsibility to cover their property and it is your responsibility to cover yours. There are different types of provisions for pay out options. You can have replacement value or cash value. Replacement value is always better than cash value because it allows you to buy all new stuff at today’s prices. Whereas cash value considers what you bought it for three years ago and may also consider depreciation. The replacement value is more expensive but it will make the loss process much easier to deal with if you are able to replace all your stuff. If you get cash value instead of replacement value because that’s all you can afford, then that’s okay because it is better than nothing. When shopping for renters insurance, you should consider the best coverage for the best premium from a company who is financially sound. It is popular for...
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