The Most Effective Way to Get Peace of Mind as a Renter or a Landlord
In addition to a homeowner’s policy, many landlords are now requiring their tenants to carry renter’s insurance because it protects both parties if disaster strikes. If a tenant who holds a renter’s insurance policy causes damages to a unit, their insurance may cover repair costs. It may also aid in reducing disputes between landlords and tenants as their insurance helps to identify where coverage applies.
A small monthly expense but well worth the investment in the event of fire, water or mold damages occurring at your property.
“Our team witnessed a property fire claim loss this year where a landlord renting to her own daughter missed the mark in this regard. Sadly the fire (started by a burning candle) destroyed large sections of her home and the vast majority of her daughter’s furniture and belongings. Making matters worse, her daughter/tenant failed to seek out renter’s insurance that would have provided a degree of protection. Can you imagine having to replace all of your day to day items used in your home all at once? Overwhelming to say the least but even more so without any financial restitution…”
Be Well Informed and Prepared
Most important is to be well prepared by knowing what renter’s insurance covers and doesn’t cover. Signing up with their auto insurer, a multi-policy discount may result in surprisingly low premiums along the lines of $10-$15 a month.
What it does cover is personal possessions which helps to cover the cost of replacing your belongings if they are ruined due to fire or theft. Additional endorsements may help to better tailor to your needs. Included in most renters policies is liability. This helps protect you if someone gets injured inside your home and loss of use provides a place to stay and covers extra food expenditures if forced to relocate while repairs are being made.
What it doesn’t cover is the full value of some items. Most insurances place a cap on pay outs and are limited on damage or theft claims. Living in Southern California, something to consider is potentially purchasing separate flood or earthquake insurance if you own expensive items that could be destroyed by a natural disaster.