When you rent a home, townhouse, condo or other dwelling, you do not own the living space so why would you need insurance? The property owner should make sure their property is properly protected. Where the owner will have homeowner’s insurance, the question then becomes does a renter need to have insurance too? Yes, even a renter will need insurance. However, instead of homeowner’s insurance, a renter will need Renter Insurance. Often there is a lot of questions about renter’s insurance and how it works. Signet Insurance Group would like to break down and share more about renter’s insurance and how it works!
What is Covered By Renters Insurance?
For those who rent you will want to have a renter’s insurance policy. Those who rent an apartment, condo, townhouse or a single family home will want to consider having an insurance policy that protects the renter and not just the landlord or owner. It is a common misconception that if a disaster happens on the rental property, the landlord will be held fully responsible for any of the damages to the renter’s personal belongings and/or injuries. It is true that the landlord or owner will have an insurance that will cover the cost of damage to the home, but not to you or your personal belongings. Renter’s insurance is a policy that is designed to help out the renters and not the landlord. Renter’s insurance typically covers the renter’s:
• Appliances and Kitchen Equipment
• Furniture
• Electronics
• Clothing
• Linens and Bedding
• Hobby Equipment – Bicycles, Musical Instruments, Tools and More
What is Not Covered By Renter’s Insurance?
Built-in appliances is covered by the homeowner’s insurance and not by the renter’s insurance. However, renter’s insurance does not just cover personal items. Another part of renter’s insurance is liability coverage and relocation coverage. Renter’s insurance will help cover the policyholder (the renter) for any legal and liability expenses related to a lawsuit if an accident or injury has occurred in the rental home. Relocation coverage will cover any expense if the policyholder needs to leave the home in the event there is a disaster, making the dwelling unfit for occupancy. Renter insurance often applies to common scenarios such as smoke, fire, water damage due to plumbing failure, theft, vandalism and windstorms. Renter insurance often doesn’t cover flood or storm damage and or earthquakes. Each policy will vary so it is important to carefully read over your renter’s insurance policy and be familiar with what is and is not covered.
Is Rental Insurance Required?
The next major question is if renter’s insurance is a requirement or an option. Renter’s insurance is not required by law for renters to have. However, some landlords will make it a requirement as a condition of the lease. It is common to see renter’s insurance be a condition of the lease. Renter’s insurance is designed to help the renter and provide some security for the landlord as well. A landlord never wants to be dragged into a lawsuit over a debate of who is responsible for what. The landlord will have their insurance policies and the renter will have theirs, creating a distinct line of who is responsible for what.
Home, Business & Auto Insurance Agency in Henderson, North LV, Reno, Spring Valley, Enterprise, Sunrise Manor, Paradise & Las Vegas, NV
Renter’s insurance is highly recommended and should be considered whether or not it is a condition of a lease. If you want renter’s insurance coverage, contact Signet Insurance Group and let’s begin creating your renter’s insurance policy today.
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