Think about what you would do if tragedy would strike your home. Have you ever thought about what you would do without any furnishings, clothing, or possessions? Anyone who is a tenant and rents space to reside in should purchase a Renter’s policy to cover their personal property along with Personal Liability coverage.
If you are living in a rented space, now's the time, not on the brink of disaster, when you should consider how to protect your possessions with renter’s insurance.
It is a good idea, if you are a landlord, to make it a mandatory practice to require all tenants to purchase a renter’s insurance policy. Many times, the tenant is not aware that the landlord’s insurance policy on their home or property does NOT cover their personal property. Additionally, if the tenant is liability for damages to the building, the personal liability coverage on the renter’s policy would provide coverage for the building. Read on to learn more about renter’s insurance.
What Does Renter’s Insurance Cover?
Renter’s insurance typically includes three types of financial protection for the renter. They are as follows:
Personal Property Coverage: This is the most basic coverage associated with renter’s insurance. It protects your belongings inside a rented space, such as electronics, furniture, clothing, etc. up to the policy’s limit. It provides compensation for belongings, allowing the renter to have items repaired or replaced. Personal property coverage will not cover any loss amount beyond the coverage limits. Valuable items such as jewelry, guns, fine arts, etc. should be specifically scheduled on the policy to provide adequate coverage.
Loss-of-Use Coverage: This coverage provides coverage to pay additional living costs in the event you can no longer live in your home/apartment due to a covered loss. This means the insurance company will reimburse the policyholder for the cost to live in another home/apartment while their rented space is being repaired or rebuilt.
Personal Liability Coverage and Medical Expenses: This coverage provides protection for the policyholder in the event he/she is liable for bodily injury or property damage of others. This coverage is not limited to the residence only, this coverage follows you wherever you go. Personal liability coverage and medical payments coverage never provide coverage for the policyholder, it only provides coverage for someone else that is not insured on the policy.
Renters’ Insurance is Important for Renters & Landlords Alike
While renter’s insurance isn’t required by law, landlords can create rental agreements for their tenants that require them to purchase a renter's policy upon signing. This is an individual decision. However, it is very valuable and a wise choice for landlords to educate their tenants on the importance of having a renters insurance policy. Without renter’s insurance, a renter is left virtually financially broken if someone or something destroys all their belongings. In addition, personal liability protection ensures damage is covered from a careless renter’s negligence. Consequently, renter's insurance can benefit not only tenants but landlords as well.