How Apartment Rental Insurance Protects Landlords and Renters

Many people rent living space for convenience and lower short-term costs. Some renters assume the landlord or owner of their residence automatically handles all insurance issues. However, that’s usually not the case. Here are important facts to know about apartment rental insurance and why some landlords require it.

What Renters Should Know

If you are renting an apartment or house, you should strongly consider buying renters insurance. This will help protect your valuable belongings in case they are lost, damaged, or stolen. A typical renters policy might cover items such as bikes, laptops, or clothes. However, you will likely need to purchase extra coverage for unique items like customized jewelry, which is difficult to price and not usually covered in a basic policy.

Every renters insurance policy is different, depending on the renter’s needs and what the insurance agency offers. It’s common for the basic policy to include relocation expenses in the event your unit is damaged by a natural disaster. Other common protections include benefits for damage caused by pets or children and coverage to pay legal bills for certain lawsuits.

Benefits for Renters

Renters benefit from having renters insurance since it provides payment to replace lost, damaged, or stolen items. It might take years to replace an expensive item without insurance coverage. The monthly cost to the renter is minimal, even when adding extra coverage for irreplaceable prized possessions.

Enrolling in a policy may be a requirement before moving into a new apartment that allows pets. Each state has its own insurance laws about animals and pets. If you have a pet, it’s essential to carry pet liability coverage, especially if you own a large dog.

How Renters Insurance Benefits Landlords

Some landlords of apartment complexes require apartment rental insurance to ensure monthly payments are not interrupted by issues like illness or job loss. Landlords, however, still must operate according to state and local laws.

The property owner or landlord should carry a certain amount of coverage in case the property is damaged by a storm or other natural disaster. However, landlords benefit from also requiring their tenants to carry insurance, in case a guest is injured on the property. The additional coverage by the renter reduces the risk of getting entangled in a lawsuit over losses or injuries on the property.

Renters with no insurance often can sue an owner or landlord if their property is damaged in a fire. And although the renter may not win a settlement, the owner can lose time and energy. It’s easier to require tenants to enroll in an insurance plan, meaning renters will deal with an insurance company, and not the property owner when items must be replaced.

Requiring renters to carry insurance allows a landlord to be pet-friendly. Pets can often damage property, so the renter should be covered in case their pet breaks a window or destroys the neighbor’s flower garden.

Learn from Your Insurance Agent

The best way to make sure you have adequate renters insurance to cover your valuable possessions is to take inventory and share your list of belongings with your insurer. The agent will keep your list on file and let you know which items might need extra coverage to ensure full protection. Ask if you can get a lower premium for minimizing risk, such as installing a burglar alarm system.

Every renter should understand the benefits of apartment rental insurance. Lacking this insurance could mean giving up valuable belongings in a catastrophe and paying out of pocket to replace them. For assistance securing the right renters insurance policy, contact Kneller Agency today. We help to find you coverage to suit your needs, apartment, and possessions, all at the right price.

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