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There is nothing difficult about the subject of rental insurance but it is something that can affect anyone that has rented equipment in the past even a house, apartment or anything that does not belong to them but could still become damaged. The purpose of rental insurance is to cover the replacement costs incurred should damage or loss be experienced for something you are renting, even if it is an apartment or house.

For instance, if you don’t own your own home, and are renting instead, you may think that you’re covered by your landlord’s insurance policy.

The fact is, though, that you’re not; a landlord’s property insurance covers damage to the structure of the property itself.

Liability and personal belongings and any furniture or equipment is not covered so this will have to be bought out of savings or not replaced at all. Also, if it is provide that the damage was as a result of negligence on the part of the tenants then they will be liable for any costs incurred.

Renter’s insurance has another benefit which you may not have considered. If you consider that a person’s welfare is the responsibility of the renter then any accident could result in expensive medical bills and even attorney’s fees. This means you are covered for that person’s medical expenses, legal costs if they should decide to sue, and any damages they might be awarded.

When renting a car you need to check your auto insurance policy to see if it covers rental car insurance as some do offer some rental car insurance coverage and quite often, your credit card will pay for damages to a rental car in the event of a wreck. If you aren’t covered under your own insurance or credit card then you could consider purchasing the collision damage waiver as it is a better option to pay about 7 to 13 dollars a day than 10,000 to 30,000 dollars to replace the rental car.

While the subject of renters insurance has not been covered in full here, the benefits of having it are huge as we all rent a good deal more than we think. You should never dismiss obtaining rental insurance as accidents happen and while we may stomach the cost of our own personal belongings getting damaged, when the property belongs to someone else and they want it replaced, it is another matter entirely. The amount you’ll pay for insurance depends on your location, your deductible, the company and policy you choose, and on whether or not you decide to pay for additional coverage. The best thing to do is look online and arrange the highest deductible you can afford as this will reduce the premium considerably.

This entry was posted on Friday, September 26th, 2008 at 5:28 am and is filed under Finance.You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.