A Renter’s Insurance policy or a Perils Policy is the insurance coverage of a rented property against damages and losses incurred due to various perils. The Policy specifically states against what perils it is insuring the property. In essence, it is an insurance policy against unexpected and unforeseen hardships. With most insurance companies there is a standard set of perils. The perils covered under a Renter’s Insurance Policy can be further subdivided as natural or human perils.
The natural perils;
-Fire or lightening windstorm
-Hail or excessive raining
-Explosion
-Falling objects
-Weight of ice , snow or sleet
-Accidental tearing apart, cracking or bulging freezing
-Volcanic eruption or Earthquake
-Sudden and accidental damage from artificially generated electric current.
The Human Perils;
-Riot or civil commotion
-Aircraft
-Vehicles
-Smoke
-Vandalism or malicious mischief
-Theft
-Burglary
-Malicious disappearance
Whenever there is a claim by a policy holder due to suffering caused by a peril, the Renter’s Insurance Policy has two methods to evaluate the worth of your belongings within the property.
1. Actual Cash Value: Damages to be paid are calculated on the basis of actual worth of property at the time of loss. It takes into account the depreciation value of the belongings over a period of time.
2. Replacement Cost: The policy holder will be compensated on the basis of the actual cost of the property at the time of loss.
It must be remembered that the Renter’s Insurance Policy does not cover expensive items like jewelry or house hold furniture. These items are to be insured by separate policies. The valuable belonging needs to be declared at the time of purchasing the policy. Anything undeclared can not be claimed for. The wise thing to do is to keep a record of all the details relating to the belongings insured against possible losses and the list is to be kept safe and secure. In localities where floods and earthquakes are common, a separate contract is signed like in most coastal areas.
Benefits for a Policy holder
The most remarkable benefit of the policy is that if a property is damaged to the extent that it is no more worthy of use, additional rent expenses for the change of place will be paid to the policy holder. The Policy can also include Accident Liabilities that you may have to face when a guest gets hurt inside your property and you are liable to pay compensation. In such cases such a policy would be a bail out blessing. Some providers do care for the pets especially some dog breeds are protected under the policy.
The Renter’s Insurance Policy is an effective protector of not only the property but its occupants as well. We never know when a calamity like 9/11 hits us or a Tsunami is coming to ruin our lives. This policy provides a safeguard mechanism as we can not leave our hard earned belongings and property unguarded.
Works Cited
Trevor Mulholland
http://EzineArticles.com/?expert=Trevor_Mulholland
Perils List taken from www.homesite.htm