Find out what you need to know about renters insurance! Landlords and apartment owners are hesitant to place limitations and requirements on renters because it could cause them to go in search for housing else where.
While understandable with regard to some particular aspects such as smoking on the premises or allowing pets – there is one requirement that should never be over looked: Renters’ insurance.
Protection for the Landlord and Renters
Numerous renters are under the idea that if they are living in an town house or rented building, they are protected under the landlord’s insurance policy. Surprisingly what they do not know is that this is only partially correct.
For the most part insurance policies held by the landlord will only cover damage to the structure of the building with very limited coverage for certain types of negligent situations, such as a landlord who is required to treat iced sidewalks. If sidewalks went untreated and a tenant were to slip and fall, the policy might provide coverage for any medical bills.
Coverage for personal belongings that may be damaged by inclement weather, theft or fire is not provided to renters under the landlord’s insurance policy. Injuries that occur to guests and even damage caused by previous renters, such as a hot water tank leaking, may not be covered under a landlord’s insurance policy. However, these situations would be covered under a Renter’s insurance policy.
Every Renters’ insurance policy will vary depending on the company that is providing the coverage, how much coverage is purchased and of course the exact situation, but the following are some examples of situations in which renters insurance will prove invaluable.
1) Coverage for Theft of Personal Belongings
The FBI has estimated that there were over 2 million burglaries in the United Sates in 2010. In the event that renters are victims of a burglary and their personal belongings are stolen, Renters’ insurance will provide coverage to help replace the items that were stolen.
Also some Renters’ insurance policies will also provide coverage if the personal belongings are not in the home. For example, if you are on vacation and you have your laptop stolen from your hotel room, Renters’ insurance may provide help replacing that laptop if you file a claim.
2.) Protection Against Dryer Fires
Dryer fries are a lot more common then people think. The U.S. Fire Administration estimated that there are approximately 2,900 dryer fires a year that account for close to $35 million in property loss or damage.
Renters’ insurance is able to provide protection to renters in the event a dryer fire should not occur. Renters’ insurance will provide compensation for loss of personal belongings, damage to other renters’ belongings, replacement of the dryer and other damaged appliances, and any structural damage that may have occurred as a result.
3) Help with Living Expenses when Displaced by a Storm or other Natural Disaster
Renters who find themselves displaced after a natural disaster may be able to seek help from their Renters’ Insurance.
Renters’ insurance may provide compensation that will help individuals find temporary lodging. If relocation services are needed because the building is uninhabitable or not able to be resorted, the Renters’ insurance policy may help with that, too.
4.) Getting Proper Renters’ Insurance Coverage
There are dozens of different types of Renters’ insurance and all do not provide the same type of coverage. Below are some suggestions for the do’s and don’ts associated with Renters’ insurance for apartment owners/landlords:
- Make sure personal liability is included.
- Determine how much coverage may be needed to cover repairs caused by damage.
- Make sure coverage includes unexpected actions – storms, neighbors causing damage, theft, etc.
Although its not the responsibility of landlords/apartment owners to know this information, it is useful in determining what type of insurance to encourage renters to purchase, and how much coverage is needed to provide protection for the property/tenants.
5.) Keeping Insurance Premiums Down
A common fear landlords have regarding Renters’ Insurance is their tenants may believe the monthly premium may be too high to pay.
Below are things landlords and apartment owners can do to help keep Renters’ insurance premiums to a minimum:
- Regularly maintain the property by clearing gutters dryer vents, and other potentially hazardous areas. >/li>
- Implement safety measures on property – proper trash disposal, requiring tenants to notify landlords/maintenance of anything that needs to be fixed.
- Require all tenants to carry a minimum Renters’ insurance policy from a reputable insurance carrier.
Renters’ insurance can be invaluable should the unexpected happen. It will protect not only the landlords/apartment owners, but all tenants who live in the building or on the property.
If you have any questions about renters’ insurance insurance , contact our insurance professionals today.
Sources: propertycasualty360.com “5 reasons why renters need insurance“, usfa.fema.gov “Clothes Dryer Fires in Residential Buildings (2008–2010)“, fbi.gov “Crime in the United States“