Renters insurance can help you repair or replace property after a loss due to many types of damage or theft. It can also provide coverage in the event of an accident at your residence. Policies often have very affordable annual premiums. Be aware that your landlord’s property insurance does not cover your belongings.
Landlords can make renter ‘s insurance mandatory to limit the risk of tenants suing them for damage to personal property or for liability expenses. But landlords have the legal right to require you to take out renters’ insurance as part of your lease. Although more and more landlords and building management companies are requiring tenants to carry renters’ insurance, most people are not required to purchase it and choose not to buy a policy. Renters’ insurance is not required by law in any state, but a landlord has the right to require tenants to purchase a policy.
There are a number of common misconceptions about renters’ insurance that may cause tenants not to purchase a policy. Tenants who occupy such dwellings may also purchase renters’ insurance policies to cover their belongings and liability exposure. If a court holds you liable, your renters’ liability insurance will usually cover the costs up to the limit you have purchased, even if the incident takes place outside your home. You may want to purchase renters insurance with personal property coverage limits close to or higher than the value of your belongings.
However, even if a tenant has no personal property, the other features of the coverage make renters insurance worthwhile. If your budget is particularly tight, you can take advantage of discounts to reduce the cost of a renters insurance policy while still obtaining valuable coverages. If you are unsure about requiring renters’ insurance for your tenants, read on to learn about the main benefits of renters’ insurance for both landlords and tenants. However, your tenants should consider purchasing a renters insurance policy, as a landlord’s homeowner’s policy does not provide any coverage for tenants’ possessions.
Despite what many tenants think, their landlord or management company does not insure them or their personal property. But if you have a car, you may pay less if you combine your renters’ policy with your car insurance, thanks to multi-policy discounts offered by many companies. Pets are not generally considered personal property, so damage or injury to them is not usually covered by a renters insurance policy.