What is Betterment?
<lingo>It refers to improvements made to a property after moving in. Also known as betterment and improvement coverage, this insurance is most often purchased by tenants who lease commercial properties, but in some cases it may make sense to add betterment coverage to homeowner's or renter's insurance policies.
Betterment insurance may include modifications or improvements made to a property that increases its value. For instance, if a tenant installs new cupboards and countertops in the condo they're renting and then the kitchen is destroyed in a fire, betterment insurance would help recoup the additional value of the newer, nicer cupboards and counters.</lingo>
Betterment insurance protects tenants if they can't use or benefit from improvements they've made to a property. In most cases, homeowner's insurance will only cover losses that are incurred by the owner of the property. But what if a renter or a condo owner makes improvements that increase the property's value, but aren't covered by homeowner's or renter's insurance? That's where betterment coverage can kick in and help the policyholder recoup their losses.
<twitter>Betterment refers to improvements made to a property after moving in. Also known as betterment and improvement coverage, betterment insurance is most often purchased by tenants who lease commercial properties, but in some cases it may make sense to add betterment coverage to homeowner's or renter's insurance policies. </twitter>
For instance, say a renter decided to replace the linoleum floor in their apartment with a new wood floor. If a pipe breaks and causes extensive water damage, the renter's insurance policy may only cover the cost of the original linoleum, rather than the increased value of the new floor. The improved floor may be considered a betterment, and betterment insurance coverage could help the renter recoup the value of the new floor, rather than the lesser value of the original floor.
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