Question

The client finally leaves her home and moves to a rental and is concerned about being displaced if the apartment becomes unlivable. Which is the best advice the counselor can provide?

A- Have a designated emergency credit card
B- Purchase a renters insurance policy that only covers contents and personal liability
C- Plan to apply rent payments to hotel expenses
D- Purchase a renters insurance policy that includes loss-of-use coverage

Answer 1

The counselor should advise the client to purchase a renters insurance policy with loss-of-use coverage to protect against being displaced if the rental becomes unlivable.

Step-by-step explanation:

The best advice a counselor can provide to a client who is concerned about being displaced if their rental apartment becomes unlivable is to purchase a renters insurance policy that includes loss-of-use coverage. This type of insurance not only covers personal belongings and liability but also assists with living expenses if the rental property is uninhabitable due to a covered event, such as fire or severe weather damage. It is crucial to evaluate insurance options to ensure adequate protection and to make an informed decision about personal financial literacy and risk management.