Below are a few examples that demonstrate that renters insurance is generally a useful purchase and worth the investment, regardless of who you are. While home, earthquake and flood insurance can be expensive, renters insurance is comparatively inexpensive. Renters insurance can help mitigate pet risks with dog bite liability and property damage coverage. But even if renters insurance is not necessary in your flat, we believe that anyone renting the home they live in should take out a renters insurance policy.
If a court holds you liable, your renters’ liability insurance will usually cover the costs up to the limit you have taken out, even if the incident takes place outside your home. Renters can benefit from obtaining renters insurance, as it protects both their personal property against damage or loss and covers their personal liability if someone is injured while on the property. While there is no doubt that there are advantages to requiring renters insurance, it is wise to carefully select the people who enter your property. Arguably, the lower a person’s income, the more they may need renters insurance, especially liability and loss of use coverages.
We recommend that you check your state and local laws before adding a clause requiring renters insurance to your lease. When deciding how much renters insurance is sufficient, the main decision you will make is to establish the limits of your personal property coverage and your liability coverage. The limits of a renters insurance policy still apply, but coverage is certainly better than nothing. If you are unsure about requiring renters insurance for your tenants, read on to learn about the main advantages of renters insurance for both landlords and tenants.
Landlords can make renters’ insurance mandatory to limit the risk of tenants suing them for personal property damage or liability costs. However, tenants who are wary of the risks of a low-probability, high-cost lawsuit should consider purchasing even higher coverage. Requiring tenants to carry renters’ insurance can protect them in the event that their property is damaged or stolen. Some landlords require their tenants to have renters’ insurance, but if your landlord does not, it is not because you are covered.