We often get asked why renters insurance is important. The fact is, the people who own the building that you are living in, the landlord, only have insurance that will cover what they own, not your possessions.
Their coverage will be limited to the land and the physical structures on it. Anything inside the building that you own will be excluded by the landlord’s insurance company. Which is why you should have a renter’s policy.
Here are some important reasons to purchase renters insurance:
- Renters are liable for injuries to guests caused by their personal property or pets.
- While the landlord is responsible for repairing structural damage caused by weather, they are not responsible for anything of yours that is damaged as a result.
- When you live in an apartment building, every unit surrounding you is a potential fire hazard.
- Renters insurance will pay to replace destroyed electrical equipment in the event faulty wiring causes a power surge.
- A renter’s insurance policy will often protect you in the event of fire, theft, vandalism, smoke, weather events and possibly even civil riots.
- Renters insurance will pay to have you live somewhere else while your apartment or home is getting repaired because of a covered loss.
- You will gain peace of mind when you have renters insurance.
KEEP ON READING IF YOU ARE A LANDLORD!
** Your building owner policy does not provide any coverage for your tenants or their possessions!
- Building owner policies provide coverage for the structure and the premises liability ONLY. There is no coverage for personal property of tenants.
** You can require your tenants to carry an insurance policy that protects you too, as the building owner!
- By having renters insurance, the tenant is assuming the financial responsibility for the loss which removes the exposure from the building owner. This can be included in the lease agreement as a requirement.
** By requiring tenants to carry insurance, you can reduce the amount of your security deposit requirement – which makes your property more desirable to prospective tenants!
- When tenants have renters insurance for the duration of their lease, any damages they may cause to the leased space can be claimed against their renters insurance. This reduces the amount of money needed as a security deposit since there is another means of reimbursement for damages.
** Requiring tenants to carry insurance can reduce the cost of your insurance over the long haul!
- If tenants have insurance, claims can be filed against their policy (when the tenant is responsible) instead of the building owner’s – eliminating surcharges for claims against the building owner.
** Tenants who carry insurance tend to be better tenants!
- Tenants who know that they can be held accountable for their actions tend to be more cautious and respectful of their leased property.
To learn more about your renters insurance options, give the Corwin-Rey team a call at (360) 414-8754.