It is important to understand what is covered by your homeowner’s insurance policy as an owner of a rental property. We have been in the business of helping potential renters understand their homeowner’s insurance coverage, so we created this blog to help landlords understand their rental insurance coverage.
Whether you own a house or you rent one, you’ll probably need some type of property insurance. In the United States, that usually means homeowners insurance, but depending on your situation, you may also need renters insurance. If you rent an apartment in a building, you’ll probably need renters insurance, too. But why? Keep reading to find out.
The personal property damages
As a renter, you have rights and obligations under a renter’s insurance policy, covering a wide range of potential perils that can damage your personal property. For example, as a renter, you have a duty to take care of your personal property, and if your property is damaged due to a peril that is covered by your policy, you can file a claim to get reimbursed for your loss.
A medical payment
Everyone knows that getting into an accident can turn a vacation into a nightmare. It would be nice if guests on the property were covered in case someone on the property injured them. Unfortunately, most policies only cover the homeowner when an invitee on their property injures someone.
A personal liability
If you are a renter and you are leasing a new apartment, you will probably have to have a renter’s insurance policy. This policy is designed to protect your personal assets and your personal liability if you have an accident on the property. For example, the policy would compensate you if someone damages your personal property or if you get injured on the property. Insurance policies are a necessity for most homeowners and business owners. They can help protect losses that occur to your property, people who live in your home, and the assets you have in your business. But you don’t want to spend all your money on insurance. You want a policy that will provide you with enough financial protection to ensure that you don’t have to worry about paying out of pocket for a claim.
The add-on living expenses
Renters insurance is an important part of your financial security, so you should have it. Renters’ insurance covers uninhabitable rental homes caused by covered perils. This is sometimes called loss of use coverage.
The increasing costs of healthcare and other comforts of modern life mean that many people are paying higher insurance premiums to cover these expenses. What is often overlooked is the fact that your personal insurance policies—whether through a bank or a specialty company—will pay for certain expenses that are not covered by your regular health policy.
A tenant’s quality of life is greatly impacted by security and quality of amenities. Renting a property is a safe, secure, and convenient way for a tenant to enter into a relationship with a landlord. An important aspect of this relationship is that it can be brought to an end easily. The tenant can terminate the agreement for whatever reason and with no legal repercussions. In addition, the landlord may choose to end the tenancy agreement without cause and without notice.
Home landlords have been advised to have tenants’ insurance policies in place now. Law-abiding citizens should have at least a portion of their property insured. The property insurance policy covers much more than the structure. It covers the cost of repairing or replacing the structure in the event it is damaged or destroyed by a fire, natural disaster, or other unforeseen circumstances.