As a landlord, you can have peace of mind knowing that your landlord insurance provides you with protection for a number of different types of losses, but what about your renters? Many renters have the mistaken impression that their landlord’s insurance also protects them from losses, so it’s important to explain to your tenants the reasons for getting their own renters’ insurance policies for more complete coverage. Here’s what renters’ insurance covers and why it’s needed.
Personal Property
Your landlord insurance covers your tenant’s dwelling, but it doesn’t cover the contents of the dwelling, which means any personal property losses are not covered. This, of course, is bad news for your renter, but it can also be bad news for you—in some circumstances, you may be held liable for their losses should they decide to sue. Many landlords require their tenants to get renters’ insurance for this reason.
With renters’ insurance, your tenant’s clothes, furniture, electronics, jewelry, and other personal property will be protected in a wide range of situations—everything from windstorms and water damage to volcanic eruptions! When your renters travel, their policy also extends to covering their belongings from theft and damage wherever they are.
Liability Protection
Liability coverage is included in most renters’ insurance policies. While liability might not be as important to renters as protecting their belongings, this is the type of coverage that is rarely needed, but when it is, it can save a policy holder from tens of thousands of dollars in legal expenses and court judgments.
The liability protection included in a renters’ insurance policy provides coverage if someone is injured in your tenant’s dwelling or if your tenant accidentally injures someone. It’s standard for renters’ insurance policies to provide $100,000 or more in liability coverage, with $1,000 to $5,000 in medical payments coverage.
Increased Living Expenses
If your tenant’s dwelling is uninhabitable after a covered peril in their renters’ insurance policy, increased living expenses may be covered. This means that if they need to move out temporarily and the rent in their temporary home is more, that difference is covered. Even food and other costs associated with living somewhere else may be covered, up to the policy limit.
Renters’ Insurance + Landlord Insurance: The Best Possible Protection
When you have landlord insurance and your tenants have renters’ insurance, you and your tenants will have the best possible protection against losses. Consider requiring your tenants to purchase renters’ insurance policies upon signing their leases or, at the very least, provide them with information about the coverage offered by renters’ insurance so they understand that your insurance doesn’t give them full protection.
To make the process of getting renters’ insurance easy, you may even wish to partner with a local insurance agent and provide your renters with a brochure from them outlining their coverage options.
Find Out More About Landlord Insurance
Contact us today at 800-644-5443 to learn more about landlord insurance and how it differs from renters’ insurance policies, or to find out how Insurance by Castle can provide coverage for your business.
