Tuesday, August 16, 2022
UncategorizedRental Insurance: What It Covers And Why You Need It

Rental Insurance: What It Covers And Why You Need It

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4 Things Tenants And Landlords Should Know About Rental Insurance

Photo by Tierra Mallorca on Unsplash
Photo by Tierra Mallorca on Unsplascol

More than one-third of Americans rent their homes, but not everyone in that demographic has rental insurance. Should they? While experts consider this non-negotiable, the fact that landlords often don’t require their tenants to hold renters insurance policies is a barrier to more widespread adoption. 

If more people understood what renters insurance covered and its benefits, however, we might find that a greater number of tenants invested in it.

Landlord Insurance and Renters Insurance

There are two key types of insurance that apply to rental properties: landlord insurance and renters insurance, and the division here is quite clear. Landlord insurance serves to protect landlords who have put their property up for rent, providing coverage for property damage and protection against legal liability. 

This is necessary if, for example, there’s a fire in the building and they need to pay for tenants’ medical care or repair the buildings, but it doesn’t do much else for tenants, and this is where renters insurance comes into play.

Help For Loss Of Housing 

If we continue with the example of a structure fire, tenants need to hold renters insurance because it ensures that they can replace lost or damaged property and, more importantly, that they can afford alternative housing if their rental becomes uninhabitable. 

This is the sort of issue many tenants mistakenly believe they can hold their landlord accountable for, but unless a property is uninhabitable due to landlord negligence, it’s unlikely they’ll have to cover your interim housing.

Storage Coverage 

Many tenants live in apartments that simply aren’t big enough for everything they own. In fact, it happens all the time, and is one of the many reasons for today’s multi-million dollar storage industry – and conveniently enough, most renters insurance policies cover these items as well since they’re also stored in a rental property, although it’s a separate one. If items are stolen or damaged in either of these locations, then, you can expect your policy will take care of it.

It’s Affordable Protection

Perhaps the greatest misunderstanding about renters insurance is that, like other critical types of coverage – think, homeowners, health, or auto insurance – renters insurance is highly affordable relative to what it covers. 

That means there’s no reason for landlords to make it optional for their tenants. If a tenant can afford the rental, they should be able to afford the rental with a renters insurance policy, and they’ll be in real trouble if they can’t because they could potentially lose everything in the event of a disaster or major accident.

Though specific renters insurance policies have their own fine print, such as limits on jewelry or fine art, or special coverage for flooding, for the average renter, a basic policy will cover everything necessary. Even if your landlord doesn’t require that you hold a renters insurance policy, then, it still ought to be viewed as essential, much like a utility service or like auto insurance. You wouldn’t drive a car without an up-to-date insurance policy, and you shouldn’t rent an apartment without one either.

 

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