The Renters Policy is a package policy that combines two separate coverages (property and liability insurance) into a single policy. So, if the client suffers a fire loss, for example, the renters policy provides coverage for the fire damage. In addition, if a guest falls down the stairs of the rented home and sues the occupant(renter), the renters policy provides liability coverage including any defense costs. To be eligible for a renters policy the renter must reside in the rented dwelling.
Description of Coverages
Section I-Property – Any claims that are covered under this section are subject to the policy deductible. For a loss to be paid it must exceed the deductible and the insured is responsible for paying the deductible.
Personal Property – If you picked up a house and turned it upside down anything that could fall out is considered personal property. The limit for personal property is noted on the declarations page and is usually written on an actual cost value. That means that if your 10-year-old television gets struck by lightning, the insurance carrier will replace it with a new television of similar size and features less your deductible and depreciation. Instead of actual cash value, the policy can be endorsed to include replacement cost. If replacement cost is added, that same television would be replaced, less the deductible with no depreciation.
Loss of Use – In the event that you are unable to occupy your home due to a covered peril, your insurance will pay for you to live elsewhere; lodging and meal costs are included here.
Section II-Liability Coverage Any claims that are covered under this section are not subject to the policy deductible.
Liability – Liability covers the sum of money that the insured is legally liable to pay to others because of bodily injury or property damage caused by an occurrence.
Occurrence – An occurrence is defined as “an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, in bodily injury or property damage during the policy period”.
Bodily injury -The policy specifically defines “bodily injury” as bodily harm, sickness, or disease including required care, loss of services, and resulting death. Most policies do not include purely emotional or mental injury. Coverage for some forms of “emotional distress” such as libel and slander usually referred to as “personal injury” can be added by endorsement.
Property damage – Property damage is defined as physical injury, destruction or loss of tangible property.
Medical Payments – Pays medical expenses to third parties for expenses incurred at the insured’s premise or arising out of the insured’s actions. Medical expenses are paid regardless of fault.
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