There are a number of liability issues that must be addressed when you are renting property. Unfortunately, many people underestimate the importance of addressing these liabilities, and this can cause them to experience major legal issues from a property rental. You can help yourself to be better prepared to avoid these problems by understanding a couple of realities about commonly held myths.
Myth: Rental Insurance Will Protect All Of Your Possessions
Having a rental insurance policy is essential for ensuring that you will be able to receive compensation for damages to your possessions. However, there are some individuals that assume their rental insurance policy will cover all of their possessions. Yet, this is not the case, and it will depend on the details of your policy and the value of your possessions.
For example, a damaged computer may seem like a simple claim to file, but you might be surprised to learn that your insurance has strict price limits for the value of the parts of the computer. As a result, you might find that the insurance will replace your high-end video card with a lower-end model. Preventing this type of a surprise when you file a claim requires you to have a more thorough understanding about your policy. If you are struggling to understand the dense language of your insurance policy, you should take a copy of it to your agent and ask for clarification on any topics that you are struggling to understand. While this may seem inconvenient, it is the best option for ensuring you have an excellent understanding of your rental coverage.
Myth: You Are Only Liable For Damages That Occur In Your Apartment
Another frequent belief is that you will only be legally liable for damages to occur inside your apartment. While you will most certainly be held liable for these damages, it should be noted that you can also be responsible for damages to other units. This can occur if your unit experiences a plumbing issue and floods the unit below it or Another common instance where this arises is due to fires. Protecting yourself from these expenses will require an insurance policy with comprehensive coverage.
Protecting yourself from the liabilities that come from property rentals can be a daunting experience to go through. However, if you are not well-informed about these risks, you may find that it is difficult to properly protect yourself. After learning the importance of knowing how your insurance will handle claims on high-value items and that you can be liable for damages to other units will help you to better appreciate and understand the value of protecting yourself with a comprehensive insurance policy.
Share10 November 2015
After I decided to buy a new home, I realized that I probably needed to prioritize the things on my wish list. Since I am not wealthy, I realized that I probably couldn't get everything that I wanted out of a single home--at least, not this time around. Fortunately, I worked with an incredible real estate agent who helped me to figure out which type of property would pay off in the end. Finding a home took a lot of time, but I am really pleased that I found the right one. This blog is all about learning to prioritize your home hunting wish list so that you can have the home and financial situation of your dreams.
