Is renters insurance required? When getting your first apartment, it’s natural to ask yourself this question. That’s why today, we’ll answer this doubt, as well as going over the coverage of this policy.
So, keep on reading to learn more about the main instances you’ll need this insurance policy.
What Is Renters Insurance, and What Does It Cover ?
First and foremost, you must be aware of what exactly renters insurance is.
A renter’s insurance policy consists of multiple coverages that help protect the renter of an apartment or home. In most instances, there are three types of coverages for this policy:
- Personal property coverage
- Personal liability and medical coverage
- Additional living expenses coverage
Personal Property Coverage
We first have personal property coverage.
As its name implies, this coverage helps avoid personal property losses. This property includes belongings such as clothing, furniture, and electronics. However, this coverage often comes with a limit.
Moreover, the threats this coverage protects against are what we know as perils, including fires and break-ins. In other words, it will aid you to pay the replacement of any burnt or stolen items.
However, keep in mind that this coverage type often is susceptible to deductibles. In other words, you’ll need to pay a small fee to help the insurer pay for the loss.
Be sure to talk with your insurance company regarding the adequate coverage of your personal belongings.
Personal Liability and Medical Coverage
Then, there’s liability coverage.
This insurance policy will cover any costs that may come from accidental damage done by the renter to other people. It also includes medical bills and property damage.
Just like the personal property coverage, this one also comes with a limit.
Additional Living Expenses Coverage
Lastly, renters’ insurance policy will cover additional living expenses.
These expenses often include fees from hotel bills and additional food payments if the apartment you’re renting suffers any damage or becomes uninhabitable. This coverage doesn’t cover any damage made by the tenant while he or she is renting it.
Is Renters Insurance Required?
So, is renters insurance required? Just like homeowners insurance, renters insurance is optional. However, landlords and management companies can ask tenants for it as part of the terms and conditions for your leasing contract. They do this to mitigate any financial costs of damages and unexpected events.
Why Do Landlords Require Tenants to Have Renter’s Insurance ?
While it might seem as if renters insurance is useless, you’d be surprised at how valuable it is for both parties. After all, this type of insurance can help renters prevent any unforeseen losses that can even lead to legal problems.
Luckily, you can find affordable quotes online when looking to buy renters insurance! For instance, here at Payless Insurance, we provide Houston citizens with reliable insurance policies at competitive pricing.
Along with the various benefits it provides to the tenant, it also avoids many problems for the property owner.
These are some common reasons why landlords require renter’s insurance:
- This insurance policy lowers their liability.
- They can recover damages.
- It helps prevent tenants from collecting damages from them.
This Insurance Policy Lowers Their Liability
Although most people tend to overlook liability coverage, it is vital to an insurance policy. That is because this type of coverage applies to unforeseen events.
For instance, if one of your guests gets hurt at your home, and you don’t have this type of policy, then it’s very likely that they will want to get compensation from the landlord. However, by having renters insurance, your own insurance company will be in charge of paying these fees.
They Can Recover Damages
Along with liability costs, renters insurance allows landlords to recover from any damage caused by the tenant. For instance, if the renter accidentally caused water damage or a fire, this insurance will cover the damages.
It Helps Prevent Tenants from Collecting Damages from Them
As most of us know, the property owner of the place your renting probably has landlord’s insurance. However, something that most renters aren’t aware of is that this insurance only covers structural damage.
When it comes to personal property and possessions, they fall on the renter. Yet, most renters usually expect their landlord to replace these.
By asking for renters insurance from their tenants, they can mitigate any expectations they need to replace their personal belongings. Not only will your property be safe, but this policy will cover any hotel stays as well, just like we explained before.
How Do Tenants Benefit from Renters Insurance?
Buying insurance is a crucial decision to make.
That’s why we’ll go over how renters can benefit from this insurance policy.
First, they protect the insured from ever falling into a crippling financial situation with the coverage they provide. With medical bills becoming higher and higher as time goes by, counting on insurance is necessary nowadays.
Additionally, if you’re a pet owner, this insurance can help cover any damage your dog might cause.
Another scenario in which renters insurance can be real handy is in cases of eviction. Remember that calamities come out of the blue. And since renting an apartment in a complex often places you at risk from mishaps done by others, you need to be ready for anything.
With renters insurance, none of these expenses will be out of your pocket.
Lastly, when having valuable personal belongings, this policy covers extensive damage done to the property.
How to Show Your Renters Insurance to Your Landlord
So, you bought renters insurance.
What’s the next step?
Well, there are a couple of ways in which you can show your landlord your recent purchase. For instance, you can present a copy of the insurance policy.
However, other scenarios in which a landlord will ask you to be on the policy are additional interest. That way, he or she will get a notification whenever the policy lapses.
Keep in mind that being an additional interest doesn’t mean that the landlord becomes an additional insured. Additional insured are usually for roommates or partners that also live in your same apartment.
Now that we answered the question of “Is renters insurance required?” along with going into detail about its coverage, it’s time for you to get this policy!
Remember to rely on a quality insurance company by your side. You can contact our team if you have any questions or looking for free estimates regarding insurance costs!