Renting a home does come with its fair share of advantages. You don’t have to worry about property taxes, and it doesn’t require a long-term commitment like buying a house does. However, even when living in a rented home, you still encounter some risks. Therefore, your landlord can require you to have a renters insurance policy.
In this article, we’ll discuss the benefits of renters insurance for both parties and why landlords typically make it mandatory. Let’s get started!
As stated above, landlords can require renters to purchase a renters insurance policy. The reason for this is the landlord’s property insurance won’t cover a tenant’s personal belongings. Landlord insurance only covers the structure of the home and the landlord’s personal items.
Below we’ll discuss the benefits and security renters insurance provides. The policy is equally beneficial to both tenants and property owners.
Your landlord’s property insurance won’t cover damage to your personal belongings in the event of a fire, theft, or flood. This means if your personal property was destroyed or stolen you’d have to bear the financial burden. Therefore, with the help of renters insurance, you’ll get an extra layer of protection.
The benefits of purchasing a renter’s insurance policy if you’re deciding to rent include:
It’s important to keep in mind, your policy will only cover you up to a certain limit. Talk with your insurance provider to see if your limit should be increased or not. Typically, if you keep high-value items on the premise then you may need to increase your coverage limit.
A great way to mitigate the risks of owning a rental home is to require your renters to have insurance. This way if someone is injured on the property you won’t be held financially responsible. Also, if your tenant’s personal property was stolen or damaged you won’t have to take on the burden.
Requiring your tenants to have renters insurance is beneficial for the following reasons:
More and more landlords require their tenant’s to purchase renters insurance due to it’s vast benefits. If you’re a landlord looking to insure your rental property give us a call today or fill out our online quote form.