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Renters Suffer Uninsured Losses

ri-9Far too many renters believe myths as if they are facts and end up flat broke and without their belongings because they have no insurance coverage.  After a fire or other emergency, tens of thousands of renters suffer uninsured losses in the U.S. each year.

Tenants need to separate the myths from reality in order to make sure everything they own is insured. If you don’t, you might find out that your personal property isn’t insured at all and that you are without a bed to sleep in and without furnishings.

The biggest myths about landlords and insurance include these:

Protect Your Stuff with Renters Insurance. Less than $1 per day • My landlord’s insurance policy covers the contents of my home. Not true, your landlord is only liable for damage to your possessions that he causes. Say if he doesn’t repair a leaky roof. Your possessions are your responsibility. Your
landlord is not liable if your possessions are lost or destroyed through misfortunes such as fire, theft and natural disasters. If you want your possessions covered you will need renters insurance.

• I don’t need liability insurance because my landlord is liable for injuries on his property. Not true when you rent a home you are responsible for liability if someone is injured or dies in or around your home. If somebody slips and falls and hurts themself in your house you are liable even if you are renting the home. The landlord is only liable if you can prove the accident was caused through his or her negligence.

• The landlord’s insurance policy will cover my car if it’s parked on his property. Not true. Your car is your property and your responsibility. The landlord is only liable for damage to the vehicle that he causes. The same goes for other vehicles including RVs and motorcycles.

• Renters insurance will cover my home business or the equipment I use to work from home. Probably not, most renters insurance policies exclude home business activities and property. You’ll need a separate rider to cover a home business and any equipment associated with it, including a computer. Renters insurance may not cover liability claims filed by customers to your home business.

• All of the possessions in my home are covered by renters insurance policy. Not true. This is another one of the many insurance myths. High value items such as collectibles, jewelry, art, electronics, precious metals and cash are excluded from renters policies. You’ll need additional coverage for these. Anything that costs more than $500 or $1,000 can be considered a high value item.