Chapter P8, Problem 4RQ

To determine

The person who needs renter’s insurance, and the reason why it is a good idea.

Explanation of Solution

Landlords and homeowners should have renter’s insurance if they can afford it as it provides insurance that covers the repair and replacement of property due to damage or theft along with personal belongings such as clothes, jewelry, etc. It covers accidents in a residence too by charging affordable annual premiums. But most people (renters) do not buy a renter’s insurance policy as they consider it unnecessary.

Renters' insurance is a good idea as it can help owners to repair or replace property after any accident, damage, or loss. And, it is available at very affordable premium rates which makes it easy for renters to buy insurance. Moreover, this insurance also includes liability coverage under which the renter can get medical payments if someone is injured in his/her home or apartment, or if the renter accidentally (unintentionally) injured someone.

Economics Concept Introduction

Introduction: Renters’ insurance is a type of insurance that assist renters to insure their personal belongings while they rent their apartments, houses, or other properties.