(US property issues & general thoughts on this subject). It is important that a landlord asks you to provide renters insurance. The purpose of renters insurance is to protect your personal property against any loss or damage incurred while residing on the property. The insurance also covers any medical bills that are incurred by you or your guests when they are on the property. This policy does not include property belonging to the landlord. The policy only covers the renter’s property against any losses brought about by negligence, or uncontrollable situations.
How Does Renters Insurance Benefit The Landlord?
It is in the landlord’s interest that they ask that you purchase renters insurance. In the event that you lose your property, the landlord has to ensure that he or she is covered against lawsuits from tenants. If you should slip and fall when on the property, you may sue the landlord over a slippery floor, but with renters insurance, the landlord does not have to pay, the insurance policy will.
The landlord also has to be aware of the increase in premiums brought about by frequent claims. If too many claims are made over time, the insurer may decline to insure the landlord. By asking you to purchase the insurance, the landlord keeps his premiums at a level rate.
What Does Rental Insurance Cover?
If you know that you are living in a rented house, and you cannot afford to replace if they suddenly become stolen or damaged, then you need renters insurance. If there are multiple tenants in an apartment block, the renters insurance protects the landlord, as well as the tenants from disasters such as theft or flooding.
If your belongings are stolen, or damaged, then the coverage will reimburse you for the loss. If you are a victim of a natural disaster, and have to find a motel to stay in as your rental property is repaired, then the insurance will pay for your accommodation costs. The coverage also protects you from liability, which means that if a guest is harmed while in your home, they will be covered.
Is Coverage Compulsory By Law?
There are landlords who will require you to have renters insurance and others who will not. The law does not require you to have renters insurance. There are ways in which you can lower the cost of this coverage — if the landlord requires renters insurance for purposes of a lease agreement or otherwise.
Should All Landlords Require Renters Insurance?
Landlords can minimize their liability and keep their insurance on the property low if they require their tenants to purchase renters insurance. As the turnover rate for most apartments can be quite high, it is necessary for landlords to require the each tenant to purchase renters insurance in order for the landlord to keep themselves against revolving-door tenants who may not be as careful as the tenants who have resided on the property in the past.
It is wise for all landlords to do whatever is in their best interest to protect their property and keep their insurance premiums as low as possible.
About the author
Henry Dink is a freelance writer who focuses on real estate, property law, finance, insurance, banking and other related issues; renters curious about obtaining renter’s insurance may want to take a peek at the well-known renters insurer Protectyourbubble.com.
