Less than two decades ago, Renter’s Insurance was extremely rare. However, in recent years, more people are noticing Renter’s Insurance as a requirement on new leases. Confused tenants are now wondering if Renter’s Insurance is mandatory and if their landlords can require them to purchase it.

Although Renter’s Insurance is not legally mandatory, landlords are allowed to request Renter’s Insurance if they wish to do so. The goal is to minimize potential property and liability risks to both the renter and landlord. In the unfortunate event of a theft, fire, or overflowing tub, Renter’s Insurance can help pay for the damages and help protect your belongings.

Even if your landlord doesn’t require you to purchase Renter’s Insurance, there are many good reasons why you may want to consider it.

 

What the Landlord’s Insurance Doesn’t Cover

Many tenants falsely assume that the landlord’s insurance would cover property and liability damage in the rental unit. However, the landlord’s insurance coverage typically only covers structural damages to the building. This policy won’t include any damage tenants cause to the home, property damage, or personal liability.

For this reason, landlords may require tenants to buy a Renter’s Insurance policy. By ensuring both the landlord and tenant have some coverage, renter’s policies help both parties avoid potentially costly and inconvenient disputes. Learn precisely how Renter’s Insurance works in this detailed article.

 

How Renter’s Insurance Benefits You

Renter’s Insurance can help protect tenants from everything the landlord’s policy doesn’t cover. For example, after a fire, the landlord’s insurance will pay for structural repairs to the building. However, if you want to recover your personal property, Renter’s Insurance can help. Similarly, if you accidentally caused the fire, Renter’s Insurance would help cover you from liability issues. In general, Renter’s Insurance covers the following:

• Liability Policy – When landlords require Renter’s Insurance, liability coverage is a mandatory policy. If you’re found to be responsible for property damage or personal injury, this policy can help protect you from some costly financial repercussions.
• Personal Property Coverage – If your private property becomes damaged, destroyed, or stolen, this optional policy can help you repair or replace the items you lost. Belongings lost in a fire or burglary, for example, would be eligible for reimbursement under a personal property policy.
• Living Expenses – Renter’s Insurance can cover the cost of hotels and other living expenses if you’re unable to live in your home as the result of a covered peril. However, policyholders should be aware that coverage does have limits.

Renter’s Insurance policies are suitable for single-person households, as well as families and roommates. Read the following article to find out if your roommate is covered under your Renter’s Insurance policy.

 

Why Share Responsibilities

With property and liability insurance rates reaching a staggering high in 2004, more property owners started to require Renter’s Insurance. The goal of introducing Renter’s Insurance was to relieve economic stress by having tenants share the cost of coverage. Although some may view Renter’s Insurance as an unfair charge to tenants, many advantages come along with a Renter’s Insurance policy.

• Tenants can insure property and have it repaired or replaced in the event of a covered peril. Without Renter’s Insurance, you’ll have to pay for damaged belongings out of pocket. Landlord’s insurance doesn’t cover damage or destruction to property inside the building. You also have some protection against personal liability if someone becomes injured in your home.
• Renter’s Insurance is not as pricey as you would expect. The average cost of premiums is $15 per month. Extra savings are possible when tenants bundle their Renter’s Insurance with their car insurance policy.
• Tenants and landlords avoid possible disputes when unexpected damage occurs. With both landlord and Renter’s Insurance policies in place, both parties have security knowing that they are covered.

With both tenants and property owners benefiting from Renter’s Insurance, it’s a logical solution that offers both safety and security. Tenants even have the option to add on additional coverage. For example, credit card and bank forgery coverage can help protect you against fraud. Similar policies, for the property of others, or medical payments to others can be added for a small extra fee.

 

Where to Find Renter’s Insurance

If you’re looking for a good Renter’s Insurance policy for your home, Protective Agency has a selection of policies and experienced consultants to help you find the right coverage. To learn more about Renter’s Insurance, contact our agents at Protective Agency at (877) 739-9367. Our licensed, friendly insurance team will be happy to answer any questions you have.