Do you have renter’s insurance? This is something, which is often overlooked by many tenants as an unnecessary expense. Keep in mind that relationships between tenants and landlords are not always smooth, and in times when issues arise, renter’s insurance can help sort things out.
Renter’s insurance protects both the landlord and the tenants. The landlords are covered for tenant safety and rental payments, and the tenants are given protection for their belongings. Despite the benefits, there are just 35% of people who have renter’s coverage. This value is significantly low when it is compared to people who buy a home insurance policy; neatly 96% homeowners opt for protection.
So why is there so much difference? We talked to an insurance professional, and he blamed misconceptions for the differences. If landlords have taken mortgages on their properties, lenders will probably have asked them to have a home insurance policy. This covers only certain instances and default on rents is not one of these. As for property owners, they assume that their landlord’s insurance is enough. Once again, this is not the case. Landlord’s insurance protects only the structure, and everything else is not covered. This also includes the properties of tenants, who often believe they are protected under their landlord’s insurance. Until they sign up for a renter’s insurance, their belongings will remain uncovered.
So are you convinced that you should have renter’s insurance or not? Let us delve in a little deeper.
Benefits for the Tenants
Assume that there is a theft and all your personal properties are stolen. If you have renter’s insurance, you can get an amount that will be worth the value of your belongings. Similarly, if there is a fire or any other natural disaster that strikes, your renter’s insurance will protect you and cover you for all costs that arise in dealing with the damages.
Benefits for the Landlords
If in any situation, your tenants cannot pay their rents, their insurance providers will and you will not have to face any loses. Similarly, in theft and other incidents, uncovered renters might blame you for their losses and vacate their units, something which you will not want.
So if you are a tenant, buy a renter’s insurance policy and if you are a landlord or a property manager, encourage your tenants to sign up for one. This will benefit all the parties involved.
