What is Renter’s Insurance?
Renters’ insurance, often called tenants’ insurance, is an insurance policy that provides some of the benefits of homeowners’ insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure. It provides liability insurance and the tenant’s personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses when the dwelling becomes uninhabitable. Renters’ insurance also provides coverage to help protect you against claims that others make against you. This is called liability coverage and can help cover medical expenses and/or legal fees if someone is injured on your property.
Due to renters’ insurance existing mainly to protect against losses to the tenant’s personal property and provide them with liability coverage but not to insure the actual dwelling, it is significantly less expensive than a homeowners’ policy. The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenant’s belongings.
What is Not Protected Under Renter’s Insurance?
A renters’ insurance policy does not provide coverage for your belongings if they’re damaged under certain events. Generally, natural disasters such as earthquakes and flooding are excluded, however, specialized policies may be available for these events. There may be other events that aren’t covered under your policy. You should always review your policy documents and contract to be sure.
Why Should I Require Renter’s Insurance?
For more information on why you should consider requiring renter’s insurance, please see the attached document from our renter’s insurance referral partner, Sure.
For more information on how you can request proof of renter’s insurance from your tenant in Innago, please click here.