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Renters Insurance Needs
Most
companies protect renters by using a homeowner policy that
is designed especially for tenants. Typical policies cover
your possessions for common causes of loss, additional living
expenses related to making other living arrangements, medical
expenses for treating people injured on your premises and,
of course, lawsuits.
Property
Coverage:
Protection under the standard tenants policy is on an actual
cash value basis (item's replacement cost less depreciation).
Example: Stewart's kitchen catches fire and his five year
old refrigerator is destroyed. A new model of the refrigerator
costs $750. His insurance company pays him $95, the difference
being five years of deteriorating value. Most companies offer
coverage on a replacement cost basis if you purchase a separate
endorsement.
Additional
Living Expenses:
A typical
tenant policy provides a limit equal to 20% of your contents
insurance limit. If your contents limit is $15,000, then your
additional living expenses limit will be $3,000.
Theft
Limitations:
Certain
types of property are quite vulnerable to being stolen, therefore
very limited coverage is available for items such as jewelry,
furs, gems, gold, silverware, pewterware, money, securities,
guns and accessories. Protection can be increased by adding
additional coverage to the tenant policy or by purchasing
a personal article floater policy.
Liability
Coverages:
Liability insurance covers you for damage you cause to others
or their property. The policy also provides for the cost of
a lawyer (if necessary) and most court costs. Examples of
liability claims include: slips and falls; beaning a neighbor's
child with a baseball; hitting a golfer with your errant hook
shot; or a friend breaking her hip when she trips on a skateboard
your child left on the stairs.
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Martinson
Insurance
518 Hawthorne Street • PO Box 8
Alexandria, MN 56308
Phone: 320-763-6518
Toll Free: 800-757-6518
Fax: 320-763-5546
E-mail: agency@martinsoninsurance.com
Web: www.martinsoninsurance.com |
