The progressive rental insurance also known as a tenant’s insurance is a kind of policy which offers some of the advantages of a homeowner’s insurance. However, it would not include the coverage for the structure or dwelling with the exception of the few small alterations which has been made to the structure by the tenant. Liability insurance is provided and the personal property of the tenant is covered against losses such as theft, fire or vandalism. The insurance also pays the expenses in case the dwelling becomes unsuitable for living in. This kind of insurance is less expensive compared to a homeowner’s policy as it only covers the personal property of the tenant and not the actual dwelling.
Policy Types
The insurance companies offer the insurgence which is based on the actual value of the cash or on the replacement value of all your possessions. Both of them work on the exact same principle but the payouts are different.
? Actual Cash Value – In cases when you file a claim on the actual value of the cash policy, the insurance adjuster would determine the damage caused to all your belongings and then after deducting a cost of depreciation would offer you the claim amount. This policy often tends to have a lower premium than its counterpart as most often the people have to come up with out-of-pocket money to purchase what they have lost.
?Replacement Value – In this plan of the progressive rental insurance, the insurance company would pay the actual amount so as to replace the lost or stolen item. This plan often comes with a higher premium but is worth the cost in case you ever have to file a claim.
Advantages of Progressive Rental Insurance
The advantages that you can gain from this kind of insurance policy are many. Listed below are a few of them.
- Protection from Fire – The best things about this kind of insurance policy is the fact that you would get the amount for all the things that get damaged in the fire. At times it is often seen that the insurance companies also provide the money to stay put somewhere else until that apartment is fixed.
- Protection from Damages Caused By You– In case you cause a fire in your rental and that somehow spreads to the nearby rental, you would be held responsible for all their incurred damages unless you have liability insurance. The liability insurance would protect you from all the damages caused by you.
- Protection from Injuries Caused To Visitors – In case you have the rental liability insurance and guests gets injured when they are visiting you, your policy would cover the cost of the legal and the medical bills. This means that this insurance offer additional protection from the potential financial damages which otherwise might become cause harm to your finances.
You might not be a homeowner but, rental insurance would offer you with the kind of protection which might turn rather beneficial in the near future or in cases of emergencies. A bit of extra money spent for the rental insurance would, in fact, save your finances in the long run.