The Case for Renters Insurance

January 21, 2011 | | Articles | No Comments

There are significant benefits of renters insurance to both the tenant and the property owner.  Tenants need to be aware that the property owner does not carry insurance to cover personal property owned by the renters.  This is a standard disclosure in most leases.

A renter’s policy would likely cover losses from theft, vandalism, fire, smoke, storm, riot, and a lot of other bad things that could happen.  Some policies will pay for temporary living expenses if the tenant can’t live in the unit while repairs are being made due to damage from a covered loss.

Most Important coverage
Probably the more important aspect of renters insurance is the Personal Liability coverage, which applies to almost any unintentional act of the tenant, or a member of their family living in the unit.  These incidents can occur either on or off the premises and coverage includes acts by the tenant’s pets.  This is a significant benefit to tenants and landlords.

Negligent acts on the part of a tenant can cause significant damage to the owner’s property.  For example, the tenant inadvertently allows the bathtub to overflow, the water floods the bathroom floor, soaks through to the unit below, causing significant damage to both units.  Since the tenant is clearly at fault, the owner could pursue him for the cost of repairs.   The Personal Liability coverage would likely cover this event.

How Much Does It Cost?
Renters insurance is relatively easy to obtain and premiums are fairly reasonable.  Factors affecting the cost and availability include the breed and previous behavior of dogs in the household, smokers in the household, prior claims, etc.  A good policy with $300,000 of Personal Liability coverage would cost around $25 per month, assuming the underwriting qualifications are met.  A good value considering the costs of not having coverage if something were to go wrong.

For helpful tips on how to choose and save money won renters insurance, check out this article from the Huffington newspaper:  Why You Need Renters Insurance Bay laguna de

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