Many renters move into a rental property, feeling safe in the belief that as long as the landlord has insurance they are covered. But is this correct? Does a landlord's insurance extend to the tenants living in the property
If something happens to any of a tenant's valuables, can they make insurance claims based on the property owner's insurance?
The answer is no. The cover provided by landlord insurance does not cover a renter, explains Dawson Property Management. And unless the tenant has their own separate insurance policy, their personal belongings will be lost if there is a fire or burglary in the apartment.
As a renter living in a property, you do not need landlord insurance. And even if you tried to get it, you would not qualify for it. However, there is a different kind of insurance that is designed for people who are renting a property. That is called renters insurance.
What Is Renters Insurance?
Also called tenants insurance, it is an insurance policy that protects renters from unpredictable events. It covers a tenant if they lose their personal belongings as a result of fire, theft, electrical surges, explosions, vandalism, or other perils.
A landlord's insurance only covers the dwelling; it does not cover the tenant's belongings. If a pipe bursts and floods a property, the landlord's insurance will cover the damage to the building. But if your furniture is damaged by the flood, it will not be paid for by the property owner's insurance.
Personal belongings covered by renters insurance include clothes, computers, electronic devices, jewelry, luggage, smartphones, furniture, and more. And the list of perils the policy protects the holder against includes: damage by aircraft & vehicles; explosion; theft; falling objects; smoke; fire or lightning; civil disturbance; windstorm & hail; volcanic eruption; malicious mischief & vandalism; the weight of ice, snow or sleet; water & steam sources (including household appliances).
Should You Get Renters Insurance?
There are many benefits to having renter's insurance, and some of them are completely unexpected.
- Covers against loss of personal property
Whether it is a laptop, jewelry, clothes, phones, electronics, and other personal belongings, a renters insurance policy covers you against loss. The value of such a cover is not always realized until you are forced to replace your belongings.
- Liability coverage
Renters insurance will pay the medical bills, to a reasonable extent, if someone is injured while living in your home. It also provides cover if you accidentally injure someone.
Additionally, renters insurance will pay for damages resulting from acts of negligence by a tenant. And it will pay the legal bills if you are involved in a lawsuit.
- Access to quality rentals
More and more property owners are requiring proof that a tenant has renters insurance before they agree to lease their property to them.
This is partly because landlords believe such people make better tenants. It is also because it reduces the burdens that are placed on the landlord's insurance cover.
- Cover while you travel
Renter's insurance does not limit its coverage of your personal belongings to only when they are with you. Regardless of whether your personal belongings is in the house with you, in the car or you traveled with them, they are still covered from loss.
- Covers additional living expenses
You are covered in the event that, as a result of one of the perils listed under your cover, you are unable to live in your home. This means that if your home becomes inhabitable the policy will cover the cost of temporarily living elsewhere, along with food and other necessities.
- Protection for the renter with pets
If you have renters insurance and your pet causes harm to someone, the policy will cover the medical bills and any legal bills that arise. This means that if your dog bites someone, you will not have to pay for their medical bills and other costs out of pocket.
How Much Does Renters Insurance Cost?
The average premium for renters insurance is $17 per month or $187 a year. This comes to around 50 cents a day, which is far less than the price of a cup of coffee. And in exchange for that paltry sum, you can insure up to $50,000 worth of your personal belongings.
Depending on the amount of coverage a person requires, the premium might go higher. But premium on renters insurance is never so high that it can ever be considered expensive.
Finally, when buying renters insurance, it is best to buy insurance that pays out the replacement cost of your belongings rather than its cash value. A policy that pays cash value means that the insurer will depreciate the item based on its age.
You will only be paid the price of a second-hand item. But if the policy pays out the replacement costs, you will be able to buy a new item.