Home Renter’S Insurance
Reasons You Should Never be Without Renter’s Insurance
If you are renting a home or apartment, you may think you’re in the clear if something goes wrong. If there is a fire, storm or other problem that damages the building, that’s the building owner’s problem, right? Well in part.
What you may not think about is that all of your things are inside of that building, and the building owner is not responsible for those items. While they will have to fix any problems with the building, you will be out all of your belongings.
Imagine if you lost all of your possessions. How much would it cost to replace them? Do you have that kind of money on hand? If not, you need renters insurance.
How Much Renter’s Insurance Do I Need?
This is a tough spot for many people. You literally need to come up with a dollar amount that will replace all the things in your home. The best way to do this is to literally take an inventory of your home and all the belongings and try to come up with what it would cost to replace everything. While it may be tempting to far over-estimate the worth of your belongings, just remember, your renter’s insurance premium will directly correlate to how much coverage you have purchased.
What Else Does Renters Insurance Do?
In addition to covering any of your belongings that may be destroyed in a fire or other disaster, there is another benefit to renter’s insurance – a legal benefit. Imagine if someone were at your home, tripped, fell and was hurt. Or perhaps they were bitten by your dog. While you may never want to think that your guests would sue you, they well could decide to and that can put you out a lot of money.
With renter’s insurance you will usually be covered for these eventualities and they will take care of any money you are forced to pay out for the injuries.
Another popular part of many renter’s insurance plans is that they offer payments if you are forced out of your home and have to find somewhere else to live while your apartment or home is being repaired. If there is a fire in your rental home, you will not be able to move back in right after the fire. You will have to wait for repairs to be done. Many renter’s insurance policies will pay for your living expenses as you wait for your home to be repaired.
Does damage already paid through an insurance claim need to be completed if home is going to foreclosure?
My best friend is letting her home go to foreclosure due to extenuating circumstances. She had water damage in April and the insurance company is going to pay her out this week on the damage ($6000). The repairs have not been completed and since she is letting the house go to foreclosure, she is contemplating getting the repairs done at all and pocketing the money. Are there repercussions for this? She is afraid of getting accused of insurance fraud. Should she do the minimal drywall work just to make it presentable? Will her claims impact her ability to get renter’s insurance for her new residence? Thank you for your help!
Well, she’s in for a bit of a surprise, because likely the check will be made payable to both her and the bank – and she’s NOT going to be able to cash it.
I seriously doubt the bank is going to sign off on it until they’ve had THEIR guy confirm that the work is done – because they know she’s financially shakey.
Yes, this claim could impact her ability to Get Renters Insurance – but her credit score is much, much more likely to prevent her from being able to get renters insurance, and will likely be a problem if she’s trying to rent from someone that does credit checks as part of the screening program.
neighbors to assist fire victims Vet Clements speak so for the United