Definition Insurance is a legal contract between you and an Insurance Company, by which the company will compensate you for any losses you incur during the period of the contract and you will make payment called premiums to the insurer for this service. Purpose Why do you need insurance? The most obvious reason is to get the finance that’s required to manage losses or damages incurred under unforeseen circumstances. The financial compensation can be very helpful in such times and that’s why insurance becomes so important in your everyday life. There are many different types of insurance. Here’s a brief look at what these are: - Life Insurance – This type of insurance protects family members from losses occurring in the event of death of the policy holder. It’s a policy that most people are seen to take during their lifetime. Car insurance – This insurance is taken on the car and protects the car owner against losses occurring due to damages occurring on the car as well as bodily harm caused by accident. Private medical insurance – This insurance provides coverage from expenses incurred during a short-term illness or injury that is curable. It helps people to get immediate treatment for their illness rather than have to wait on an NHS waiting list. Travel insurance – This kind of insurance is increasingly taken by many people as traveling can be dangerous and there can be unexpected medical expenses during a journey. Such expenses can be quite costly and taking travel insurance can be a real life saver under such circumstances. Critical illness insurance – Under this insurance type, you receive coverage for any critical illness that may occur in the latter part of your life, by which you may not be able to work any longer. It helps to protect your loved ones, under such trying circumstances. Home insurance – This insurance type provides coverage if your home is damaged as a result on unforeseen circumstances such as floods, thefts, fire and so on. Pet insurance – This type of insurance protects you against in the event you have to pay a huge bill to cover for your pet’s medical insurance. Whatever, be the type of insurance you take, ensure that you read up on all the details of the policy, and the items for which you get coverage so that you know how you are going to get compensated, if the need arises. About Renter’s Insurance Renter’s insurance is a form of home insurance, which is designed for people who live in rented homes or rented apartments. It is a very useful type of home insurance because it provides coverage for the renter against losses in their personal property. As a person who lives in a rented home, you need to have renter’s insurance because the home insurance that your landlord is taking will cover only for any structural damages to the home and not to your personal belongings. This is a very important point to understand because very often what is mistaken is that in case there is any damage to personal belonging the landlord’s insurance policy will cover for it. This does not happen. You are responsible getting the coverage you require for your personal belongings. Imagine a situation where wind or water damages the ceiling, the landlord will fix it up immediately using their home insurance for coverage. However, if your brand new T.V, or refrigerator got damaged this way, you would need to replace it. Similarly if you had to live elsewhere while your existing rented home got fixed, what would you do for the extra living expense. Sure enough renter’s insurance will help you out in both these situations. One of the most important benefits renters insurance can give you in addition to coverage for losses is liability coverage. This means you get protection in the event that someone files a lawsuit against you for any injury that happens to him or her while they are on the property that you rent. Even the cost of medical expenses is covered up to a certain point for the person injured. For example, if someone who has come to visit you actually slips on the ice outside your doorway, which you had to keep clear at all times and they decide to sue you for this, renter’s insurance can help to pay up for medical costs. It does not matter what type of property you are renting. What’s important is to get a renter’s insurance as soon as possible. There are times when a landlord will insist that a tenant get renter’s insurance. Don’t avoid if this happens as it can prove to be very useful under unexpected losses. It does not cost much as you may have to pay only $10 every month towards the coverage. Summary Every person living in a rented home should consider taking renter’s insurance. It can prove to be very useful under unexpected circumstances.