We are a society that likes to insure things. We insure our homes, our car, the diamonds we wear on our fingers, our health, and even our phones. A tenant living in a rental home is no different. Just as landlords carry an insurance policy on their investment properties, tenants can carry a renters insurance policy to cover their personal items. And although relatively cheap in cost, many tenants don’t carry it. While many landlords don’t require their tenants to carry insurance, most stress the importance of carrying such a policy, as they can be mutually beneficial to both parties. Other landlords, however, do require a policy be in place prior to a tenant taking occupancy.
In a post by Let’s Talk Property Management, ten talking points are given to help landlords convey the importance of renters insurance to their tenants, and they go like this:
- In the case of a break-in: If a thief breaks into your home while you are away and takes all your electronics, or if someone pockets your jewelry during an outing, your renter’s insurance will help you to replace the stolen items.
- In the case of a fire: Should faulty wiring spark a fire, or if another resident in your apartment leaves their stove on, your landlord’s insurance will only cover the cost of damages to the building itself. Your belongings inside--potentially ravaged by fires and smoke will only be covered by your personal renters insurance policy.
- In the case of pet attacks: The liability coverage often offered by renters insurance can pay for medical treatment if someone is bitten by your dog, even if that happens outside of your home.
- In the case of a burst pipe: Old, weak plumbing or freezing temperatures can cause pipes to burst or leak. It may surprise you to know, that should this cause water damage to your belongings, your landlord's insurance will still not cover the items. Renters insurance will supply the funds to replace the items you lost.
- In the case of a lawsuit: If a guest comes to your home and is injured, you run the risk of them suing you to cover the costs of medical bills or more. In these instances, your renters insurance policy could offer liability coverage that can pay court fees up to the limit of your coverage.
- In the case of landlord requirements: Some landlords, knowing the benefits of renters insurance, will require you to purchase a policy as part of the rental agreement. Having a renters insurance policy in place could help you secure the lease to your dream rental.
- In the case of vandalization: If a rock is thrown through your window and hits your flat-screen TV, or an angry ex-partner damages your belongings, renters insurance can cover these items.
- In the case of negligence: If you forget to blow out a candle before leaving home, or you ran the tap too long while on a phone call and it flooded the apartment below yours, renters insurance can replace not only your belongings but protect your finances if your landlord sues for the costs of the damage to the property. In many cases, the landlord’s insurance company will choose to sue the tenant for damages, so renters insurance can help protect your assets.
- In the case of theft from your car: Contrary to what you may believe, most auto-insurance policies will not replace items stolen from a car and merely protect the structure of the car itself. If your car is broken into and your laptop is stolen, renters insurance will be the policy that covers your replacement.
- In the case of an unlivable home: If a natural disaster, flood or fire causes you to need to vacate your home until it is restored to a safe and livable condition, renters insurance can help pay for your cost of living expenses if you need to stay in a hotel in the meantime.
**While we are professional property managers, we are not professional insurance agents. We always advise speaking with a professional insurance agent regarding policies, coverage, and rates. **
To view the full Let’s Talk Property Management article, click here.