You are ready to rent a property and you have made your budget, but now you are hearing that you need to pay renters insurance! Why do landlords require renters insurance? Isn't that something that they should be covering? The truth of the matter is that it's something sensible and good for both of you. So, why do landlords require renters insurance? The quick answer is that It is there to protect them, to protect you, and to receive lower premiums for renters insurance coverage. Let's break it down a little and we can show you what we mean by this. It's not such a bad idea, once you know all of the facts!
Should a Landlord Require Renters Insurance?
From the landlords perspective, requiring renters insurance is a pretty sound decision. Renters insurance can help to cover some potential issues, such as:
• This extra protection helps them to offer pet-friendly properties
• Renters insurance helps protect against requiring lawsuits over accidental property damage
• Helps to cover the cost of relocating you in case of accidental or natural disasters, such as fire or weather-related incidents
• It helps them to find more responsible tenants, as tenants who agree to purchase the insurance are less likely to damage the property
As you can see, from a landlords perspective there are a lot of good reasons why they should ask you to purchase renters insurance. The good news is that there are a lot of advantages to this for you as well!
• This extra protection helps them to offer pet-friendly properties
• Renters insurance helps protect against requiring lawsuits over accidental property damage
• Helps to cover the cost of relocating you in case of accidental or natural disasters, such as fire or weather-related incidents
• It helps them to find more responsible tenants, as tenants who agree to purchase the insurance are less likely to damage the property
As you can see, from a landlords perspective there are a lot of good reasons why they should ask you to purchase renters insurance. The good news is that there are a lot of advantages to this for you as well!
Why Renters Insurance Is a Good Idea for Both of You
Renters insurance isn't just a good idea for the landlord, however, it is also an excellent idea for you. Yes, it adds to your overall price, but some advantages come with coverage. Such as:
• Property protection in your landlord's policy is likely only going to cover the property itself, but if you have renters insurance then your property may be inventoried and protected as theft, fire, and many other types of damage so that you may have it replaced or receive the depreciated value if something happens to your things.
• Lower premiums landlord obtaining the policy will have to make more claims than the average individual, so they have a higher premium than you would pay as an individual.
• Lawsuit protection that sword cuts both ways and just as the landlord needs protection from less-savoury tenants, having your policy can protect you against damages claimed by a less-savoury landlord.
• Medical for guests Renters insurance can help to protect you if a guest has an accident in your apartment, house, or condo by covering all or a portion of their medical expenses.
• Property protection in your landlord's policy is likely only going to cover the property itself, but if you have renters insurance then your property may be inventoried and protected as theft, fire, and many other types of damage so that you may have it replaced or receive the depreciated value if something happens to your things.
• Lower premiums landlord obtaining the policy will have to make more claims than the average individual, so they have a higher premium than you would pay as an individual.
• Lawsuit protection that sword cuts both ways and just as the landlord needs protection from less-savoury tenants, having your policy can protect you against damages claimed by a less-savoury landlord.
• Medical for guests Renters insurance can help to protect you if a guest has an accident in your apartment, house, or condo by covering all or a portion of their medical expenses.
What Does Renters Insurance Cover?
Renters insurance covers a variety of things and you will want to check with your Insurance agent just to be firm on the details. That said, generally, it is going to cover protection of your personal property from theft, the potential damage from the weather or a sewer backup, or accidental injury of a guest. These are just a few examples, however, so we cannot stress enough to discuss the details with your Insurance agent in case you have any special requirements. It pays to know and it costs when you don't! Renters insurance is a good idea. You worked hard to make the money to earn a few nice things and if you don't protect them then a natural disaster or an unsavoury character can easily take these things away in a heartbeat. With renters insurance, it will still be a shock, but you can find comfort in knowing that you will soon be whole again!