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Many renters don't stop to think about what happens if there is a fire, someone breaks in and steals their new TV or stereo, or a visitor slips and falls on their property. The sad truth is; you will be responsible! While your landlord has
insurance that covers the actual building, that coverage does not include your personal property or liability for injuries which occur in the space you rent ~ be it an apartment or a house and yard.
If a fire should destroy or damage your home, your landlord's insurance will cover the structure. It won't cover damage or loss of your belongings. Neither will it provide for the cost of temporary housing for you and your family.
You may think you don't own enough personal property to make the cost of insurance worthwhile. You're probably wrong! If you sit down and add up the cost of everything you own, you may be in for a big surprise. Consider what you have invested in such things as:
• Furniture and accessories
• Electronics like TV, stereo, computers
• Small appliances like microwaves, toaster ovens, etc.
• Clothing
• Art work like paintings or prints
• Dishes, silverware and cookware
• Sporting equipment
• Books
• Jewelry
Could you afford to replace all of these things?
Even worse, what would you do if a friend is injured on your property and decides to sue you for medical costs and more? It's a scary thought, isn't it?
Are you beginning to see why rental insurance may be a very wise investment?
The cost of rental insurance is based on several factors:
• The dollar amount of your coverage
• Deductibles
• Whether you choose to be reimbursed for Actual Cash Value or Replacement Costs (more about that in a minute)
• Where your rental property is located and the number of previous claims made, not only by you, but by others living in the same area.
Let me explain the difference between Actual Cash Value (ACV) and Replacement Costs. ACV is the value of your property at the time a loss takes place. For example, if your television set is five years old, it's valued at much less than if it were brand new. The lesser amount is what you are reimbursed.
However, if you opt for Replacement Cost, you're paid whatever it costs to go out and buy a new TV with similar features. Insuring for replacement cost raises the amount of your premium so it's a good idea to get quotes for both ACV and Replacement Cost policies. Then you can decide which option fits your needs and budget.
Another thing to keep in mind is that jewelry, valuable collections, and guns are usually covered under a separate policy or “rider”. If you own these kinds of items, be sure to tell your insurance agent. You don't want to find out after disaster strikes that they aren't covered or that they aren't covered for their true value.
One way you can reduce the cost of your rental insurance is to check with whichever company insures your car. If they provide rental insurance you may be eligible for a multi-line discount.
Rental insurance may be worth the investment just for the peace of mind it offers you.
Something that concerns a lot of individuals looking to rent cars is whether or not they can rent the car without having their own driver's insurance. Why would someone not already have driver's insurance? Well, they may live in a city in which their own transportation is not needed, so they use public transportation. This may mean that they don't have a car. However, they may have their license.
Most individuals who have cars have driver's insurance. But once in a while there is that person who comes to the car rental establishment and they don't have a car. That means they don't have insurance. So what does that mean for them when wanting to rent a car? Are they going to be able to rent the car? The answer might surprise you.
No insurance?
So let's say you walk into your local car rental place and you tell them you don't have insurance. Do you think they're going to look at you like you're a terrible person? The truth is that they won't. They're not going to look at you like you're terrible because there are plenty of people who walk into their establishment and they don't have insurance.
Here is how they do it:
- The car rental establishment will make a copy of your driver's license. From there they will then tell you what your options are. They may also offer you other things that you may or may not need, so make sure you're not going to end up paying for things that you don't need.
- If you tell them that you don't have driver's insurance, then they will let you know that they have an insurance plan for you. You will have to purchase that insurance plan if you don't have insurance of your own or your insurance doesn't cover rental cars.
That's another issue - that some insurance companies may not cover rental cars. This has to do with what sort of insurance you have taken out with them. If you have a full coverage plan, you can expect that a rental car is going to be covered. If you have a liability plan, you need to look closely at what you have purchased. Either way, you're going to have to provide the car rental business with a copy of your insurance card.
But if you don't have an insurance card, that's alright. They will offer you their own insurance, which will cover you while you rent the car. The prices will vary based on the business you decide to do business with. So if you don't have driver's insurance, make sure you make this part of the deal when shopping around for a company. Make sure you find the best rate or you may find you're paying more for insurance than what you need to.
Problem solved
So now you can see how easy it is to solve the problem. If you don't have driver's insurance, that is definitely not an issue. If you have a license, then you're in business. The only reason why someone should have to worry about not being able to rent a car is if they are too young or they are not licensed to drive. Other than those two things, you should be fine when it comes to renting a car anywhere in the world. So at least you now know that you don't have to worry if you need to rent a car and you have no insurance. That is just one more thing that you can add to the things that you know.