Contents Insurance: Three Reasons a Policy Is a Must

Posted by Benji Riggins on December 28, 2010 under Renters Insurance | Be the First to Comment

Many experts recommend for tenants to have a comprehensive contents insurance policy. Here are three reason why renters should always have coverage.

1. Contents insurance offers extensive coverage. A renters insurance policy is much like that of a homeowners policy without the aspect of covering the physical structure, but at a much lower cost. The landlord has insurance to cover the structure but the contents of the tenant must be covered under a separate policy. They provide protection for the items owned by the renter and have a liability aspect. Generally they cover 16 types of perils, including: fire or lightning, windstorm or hail, explosion, riot or civil commotion, damage caused by aircraft, damage caused by vehicles, smoke, vandalism or malicious mischief, theft, volcanic eruption, falling objects, weight of ice or snow or sleet, and some specific water damage, plumbing damage, and electrical current damage.

2. There is a liability aspect. This part of a contents insurance policy for renters covers the tenant if someone is injured in their rental property. This would cover the medical costs and any legal expenses if the renter is sued. Typically, these situations have to do with an injury to a guest at the dwelling and also involve damage done to others’ property by someone insured on the plan.

3. Extensive coverage at a low price. The cost of rental insurance is about $10 to $20 a month, depending on the state. Not every contents insurance policy has the same level of protection and, therefore, some will cost more than others.

Holiday Insurance Tip to Help You and Your Belongings Survive the Season

Posted by Benji Riggins on December 16, 2010 under Renters Insurance | Be the First to Comment

NEW YORK, Dec. 9, 2010 /PRNewswire/ — Christmas tree fires, which can tear through an apartment; burglaries, which spike when gifts are under the tree; and improper fireplace use can turn the most wonderful time of the year into a nightmare.

In New York City, where most residents live in apartments, condos and co-ops, 60 to 80 percent may not have renters insurance to cover fire damages or theft losses. Renters are not typically covered by their landlord’s insurance policy. The costs of a quick break-in or small holiday fire can add up quickly: a shiny new iPhone4, a MacBook Pro, a 52″ HDTV and a decent shoe collection can easily add up to $25,000 to $50,000 or more.

“A holiday home or apartment fire is devastating,” said Jeffery Schneider, president of Gotham Brokerage Co., Inc., a New York insurance brokerage. “Without the right coverage, tenants lose everything.”

According to the National Fire Protection Association, heaters and radiators ignite 26 percent of Christmas tree fires. Decorative lights spark 23 percent of such fires, and burning candles account for another 14 percent.

Add in cooking-related fires, which can cause extensive smoke damage, and other mishaps and the holidays can be downright hazardous. “We have people trying to start wood fires in gas fireplaces every year,” Schneider said. “Or the flue is shut and smoke fills the apartment or they incinerate the turkey.”

Beyond replacement of valuable goods, a renter’s insurance policy defrays the cost of other lodging if fire or smoke damage make the apartment uninhabitable.

Best of all, renters insurance is surprisingly affordable and makes a good gift for those folks who have great stuff but don’t protect it.

“For less than the cost of a latte a day, renters can insure their personal belongings and protect themselves against potential liability claims,” says Schneider. “The small investment can pay off handsomely if something goes wrong.”