Renters Insurance: Who Does It Protect?
Emily Sperry November 12, 2019
Renter’s insurance is a relatively new concept. Most tenants don’t want to spend the extra money on it, though they may have to. More and more landlords require insurance for all of their tenants. However, you may also want the extra protection that renter’s insurance offers you.
That being said, you may be wondering exactly who is protected with renter’s insurance.
Protection for the tenant.
Most people would believe that renter’s insurance is for the tenant. It truly is.
It will cover any damages and losses that occur while renting an apartment (or home).
This can be due to fires, theft, and even vandalism. There are different types of coverage available. You may look into actual cash value, which takes depreciation into account, or you may want replacement cost coverage. However, you may have to read the fine print. Your renter’s insurance may have some limits. If you have some really valuable items, you may need some extra coverage. This can include any jewelry or collectibles that you may own.
Since renter’s insurance also covers any liability that may occur, it protects the tenants in case one of their visitors injures themselves at their home.
Your insurance may help to cover any injuries and medical bills that occur with anyone who gets hurt in your apartment or home.
It may also provide compensation if you must move out of your apartment because it is uninhabitable.
If your apartment or home becomes uninhabitable, your renter’s insurance may help you cover a new place to live while your apartment or home is being worked on. If the storm damage or fire was too severe, you may find yourself living in a small apartment or hotel while it is being fixed. This can become expensive quick so you should try to find renter’s insurance that will help to cover these extra expenses.
Protection for the landlord.
Though it doesn’t necessarily protect you as the landlord right away, the truth is that when you require renter’s insurance for all of your tenants, you are protecting yourself!
Renter’s insurance protects the valuables of your tenants.
You will have peace of mind that if anything happens, your tenants won’t have to worry about their valuables. You won’t be held responsible if a fire destroys their furniture and couches. Their insurance will cover these losses. If a burglary happens, you will need to focus on the problem, not the lost items.
It also protects you against any liabilities that may occur on the property.
Though you will need to have your own liability insurance on your rental property, you may be able to have less coverage because renter’s insurance can help pay the costs of certain liabilities. Even if you need the full amount, you won’t notice a change in your rates if someone gets hurt and your tenant’s insurance ends up covering it!
Requiring renter’s insurance will also give you peace of mind if your rental property becomes uninhabitable.
If your rental property becomes uninhabitable, you are going to have a lot to think about. You are going to have to figure out how to fix it as quickly as possible to get your tenants back into their apartment or home. You are going to have to deal with contractors and the insurance company as you figure out how to pay for the damages.
You don’t want to have to worry about where your tenants will go (and how they will pay for it).
The simple truth is that renter’s insurance will protect both the renter and the landlord. The renter won’t have to worry about his or her valuables and the landlord can have peace of mind in case the unthinkable happens. If something is lost or damaged, the insurance will take care of it. If someone is hurt, the insurance will protect both of you. It may also help renter’s find a place to stay if the apartment or home ever becomes uninhabitable.
Contact us for all of your insurance needs. We will help you find renter’s insurance that will cover your possessions, at an affordable price.