Posted on: Friday, May 16, 2008
Renter's insurance can cover damages, injury
By Marshall Loeb
MarketWatch
NEW YORK — With so many college graduates migrating from the dorms this month, one item they may neglect in their move to the real world is renter's insurance. Renter's insurance is an often-ignored option that covers everything from personal property to personal liability.
If you're renting for the first time, or have been renting for years without insurance, you might want to consider this insurance.
From www.MSN.com, here are four myths about renter's insurance:
My landlord's covered. In most cases, a landlord's insurance covers only structural damage to the building itself — and many landlord policies don't even go that far if the damage is caused by a tenant. If you leave the tub running and it turns your floor into cardboard and dribbles downstairs, damaging your neighbor's couch, you may be liable for the whole drippy mess. If your building goes up in flames, your landlord's coverage would include repairs, but only to the building, not to the possessions of tenants.
It's out of my price range. Is $10 to $20 per month too much? For lower rates, you can raise the deductible. For more protection, you can pay more for replacement-cost coverage, in which the reimbursement is based on current replacement cost rather than the original value.
I'm in a great building and I'm not worried about security. Renter's insurance extends beyond on-premise theft and hazards. If your suitcase is stolen while you're on vacation, you'll likely be covered. Same with property stolen from your car. If you're prone to barroom brawls you might need more help than renter's insurance, but you'll probably be covered if you hurt someone. Speaking of injuries, you'll also likely be protected if someone slips and sprains their ankle at your annual dance-a-thon; you may even receive compensation for legal defense costs in a lawsuit.
My stuff isn't really worth much. You might be surprised at how quickly all those books, CDs and kitchen appliances add up.
