Download Renter's Insurance: How to Get the Best Coverage for the Cheapest Price When Someone Else Owns the Place Where You Live PDF

TitleRenter's Insurance: How to Get the Best Coverage for the Cheapest Price When Someone Else Owns the Place Where You Live
LanguageEnglish
File Size970.6 KB
Total Pages259
Document Text Contents
Page 2

SILVER LAKE PUBLISHING
LOS ANGELES, CA ABERDEEN, WA

How to Get the Best
Coverage at the Best Price
When Someone Else Owns
the Place Where You Live

Renters
Insurance

Page 129

122

I M P O R T A N T D E F I N I T I O N S

surance, most policies will state that when the dam-
age to property is economically repairable, actual
cash value means the cost of repairing the damage,
less reasonable deduction for wear and tear, deterio-
ration and obsolescence. On the other hand, when
the loss or damage to property creates a total loss,
actual cash value means the market value of property
in a used condition equal to that of the destroyed
property, if reasonably available on the used market.

For example: You lose your 1993 Bang & Olufsen

stereo in a fire. But today it’s only worth a fraction

of your purchase price. Actual cash value will only

get you that fraction with which to go shopping for

a new stereo. Because there is little cost difference

between a policy that stipulates actual cash value

and one that covers replacement cost, it’s best to

choose a policy that will replace your possessions.

(Then you’ll be able to purchase a new Bang &

Olufsen.) See Replacement Cost.

B O D I L Y I N J U R Y

This refers to bodily harm, sickness or disease,
including required care, loss of services and resulting
death. Bodily injury coverage, which is found in the
liability portion of a renters policy, does not include
any communicable disease transmitted by an insured
to anyone else. Note that bodily injury and personal
injury are two separate things. Bodily injury simply
refers to physical injury, while personal injury includes
bodily injury and also nonphysical injuries like libel,
slander, illegal discrimination and defamation. See Per-
sonal Injury.

Page 130

C H A P T E R 5

123

B U S I N E S S A C T I V I T I E S

Business means any trade, profession or occupation.
Business activity is any agreement, contract, trans-
action or other interaction that advances your occu-
pation. These terms are important because, in most
cases, renters policies limit coverage for businesses
and business activities.

In a standard policy, business-related property is in-
sured up to a few thousand dollars.

Business-related liability is a more complicated is-

sue. Liability coverage for business-related activi-

ties is strictly limited. Any significant business ex-

posure should be covered under a separate com-

mercial policy.

See Chapter 9 for more information on business cov-
erage.

C A N C E L L A T I O N

You may cancel a policy at any time and for any rea-
son. You simply have to notify the company in writ-
ing. You must send a notice of cancellation to your
insurer a prescribed number of days before it be-
comes effective.

However, the company may cancel a policy only at
certain times and for certain reasons.

Page 258

I N D E X

249

theft 5, 9, 16-17, 19, 24-26, 29, 47, 104-105, 107-108,
138, 141, 150-151, 177, 180, 187

transferability 30

umbrella policy 151, 199-203, 205-206, 208-210, 212-
217

unlawful acts 213
unscheduled property 148

vandalism and malicious mischief 26, 151
vehicle liability 112
vicarious liability 113, 151-152

water damage 5, 13, 16, 24, 42, 131-132, 156-157, 200
workers’ compensation insurance 37, 161, 204, 226,

228
wraparound policy 167

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250

I N D E X

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