Many people become confused when you mention rental insurance but it isn’t difficult to explain and all of us have been in the position of renting equipment that could get damaged. Often people rent things with the false belief that some other insurance plan they have will cover them.
Take the situation of someone who is renting accommodation for instance where they truly believe that they are protected by the landlord’s insurance policy. It is true that the landlord will have insurance on his property but it is only for situations where damage is done to the structure itself.
Personal belongings, equipment, fridges, freezers, TV’s for example are not covered by this policy and if you are not insured they will have to be replaced out of your own funds. You may be liable for any damage done to the apartment or house you're renting as a result of fire due to your negligence.
Renter's insurance has another benefit which you may not have considered. If an accident or injury occurs inside the property you are renting that requires medical attention then any costs involved will be the responsibility of the renter. All medical fees and legal costs will be paid for you if necessary so it is obviously worth the monthly outlay.
It is quite common for people to rent a car believing that their own insurance will cover the costs if there is an accident but this isn’t always the case or if they do it has limited conditions but a worthwhile check should be carried out on the credit card you paid for the rental on as this may cover the costs. 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.
This article has only highlighted two areas where renters insurance can be of use but it can be used for anything that can be rented, so that motor home you planned to rent or that yacht for the weekend will fall neatly into this type of insurance. This is not the type of insurance that should be dismissed without thought as it will bring a great deal of peace of mind when you collect that one hundred thousand dollar motor home you are having for a week. The price for rental insurance will depend on many things but be aware that some locations are considered a higher risk and will call for a higher premium and how much deductible is standard will also have a bearing. The best thing to do is look online and arrange the highest deductible you can afford as this will reduce the premium considerably.
