Yes, renters insurance is unselfish

Let’s face it if you are in insurance renters insurance is a “throw away” kind of policy.  Doesn’t cost much therefore many agents do not like to spend time on it.  Some of us happen to love it.  Because it is so inexpensive it should become more like a “Well it is so inexpensive why wouldn’t you…”  And that is almost exactly right.  It is also a really great thing to do for you and your landlord.

The obvious coverage is that is protects your “stuff” which is great.  Well it also provides coverage for you to live somewhere while the home/apartment/condo you rent cannot be lived in because of a claim.  Not bad.  There is also liability coverage in case something happens on your property and you are sued.  Not bad.  All of this for maybe $20 or less a month.

You are also helping your landlord.  Yes, many times your landlord will get a small discount on their insurance if you have renters insurance.  In fact by you having coverage you may also allow your landlord to get more companies to insure the residence.  It is always wonderful that while helping yourself you get to help others.

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Why you insure at replacement cost not purchase price

So many people like to buy investment properties some even expand and develop a full portfolio.  One thing they have in common is not paying full price.  Now the investor buys this property to see two things occur; The property appreciate and the monthly cash flow it should bring.

So many times when you are not buying a traditional home insurance policy you have a little more flexibility with the replacement value of the home.  One key to remember is you need to rebuild a structure that you can rent for the same money you were receiving before it was damaged/destroyed.  You do not need to build the same exact home remember this is a money making venture.  Let’s rebuild a structure that can earn money.

About that monthly money, I always aim to have at least one year of rent covered by the insurance policy.  Make sure your policy has this built in, as long as your rent is in line with the fair market rents of the area this will work.

Just some ideas, use as you wish