What People Are Saying
Thanks for making it easy to find the cheapest renters insurance. Knowing our stuff is always protected gives me peace of mind.
Matt and Bethany, Seattle WA
Rental insurance is being required of individuals entering into rental agreements on a more and more frequent basis. It is fast becoming the industry standard. Leasing companies and private landlords are using it in part as a way of gauging the level of responsibility of the prospective leaseholder. They also use it as a hedge against claims on their homeowners policy.
Rental insurance provides the same coverage as any other kind of insurance offered for individuals or businesses occupying a building that has been rented from another person or entity for use as a home or place of business. Whatever the use to which the building will be put, the responsibilities of the leaseholder are the same. The tenant is responsible for ensuring that liability coverage ahs been purchased so that adequate resources would be available to respond if any person is injured while on the property.
The responsible occupant of the loft, or house, or apartment, or office, would also ensure that if any damage were to be done to the property or any valuable items destroyed or loss, there would also be the financial resources with which those items might be replaced or repaired. This is a good thing for a property owner to have, and it is even more critical in many respects for a person making use of property that is not personal property.
Why Renters Need Insurance
Normal wear and tear is an expected occurrence everywhere. It is expected on vehicles, on shoes, and on homes in which people live. It is accounted for in value estimates of furniture, and of houses. So, when a person rents a house, or an apartment, or an office space, no one is ever surprised that certain things break, or wear thin, or fade. Property owners plan for that, and build those costs into the rent they charge. Should any element break or cease to work, the leaseholder need only inform the titleholder of the property and the repairs will be made. In ideal circumstances, of course.
In an extraordinary circumstance such as an apartment fire that renders the rental apartment uninhabitable, the property owner will receive a payout from the insurance carrier if there is an active homeowners coverage policy. With this money, the landlord can clean, repair, and replace the damaged portions. There will be little or no need to use up personal financial reserves. The landlord will also receive los of use compensation, because no rent payment will be incoming during the months it take to repair the dwelling.
The leaseholder, the person who had rented the apartment will receive not one cent of compensation even if every stick of furniture, every stitch of clothing, and every item of value that he or she possessed was lost in the fire, unless that person had purchased a rental insurance policy. If on the other hand, the renter did have valid rental insurance coverage on the rental property, with attached inventory of belongings, there will also be cash payouts with which to replace the furniture and appliance and clothing and other valuables.
The insurance company will also reimburse the leaseholder the costs or hotels, restaurant meals, or the rental on another apartment, during the time that the apartment remains uninhabitable, according to the specific agreements included within the rental insurance policy in the possession of the renter.
There is no absolute requirement that individuals obtain rental insurance when they rent a property. It is merely a very wise precaution that has saved many a renter from severe financial hardship.
When renters and landlords sign rental agreements and leases nowadays, the renters are more often being required to produce proof that a valid rental insurance policy is in place. Some renters have been know to take exception to that on basis of a false assumption, to wit, that the landlord's policy on the greater rental property also covers the unit in which they make their private homes.
Rental insurance is not terribly expensive, but it is important that leaseholders be very careful in selecting a carrier and in making sure they are fully conversant with the provisions and clauses in their policies. They should, in particular, pay very careful attention to the clauses that are not listed in the standard form, and ask about any other coverage they might need. They should make their assessments the way insurance companies do and gather a wide variety of rental insurance quotes.
Individuals seeking to purchase rental insurance should assess the likelihood of certain risks that are peculiar to their neighborhoods and geographic locations and purchase insurance coverage accordingly. They should find about rates of burglary and vandalism. They need to ensure that fire alarms and smoke detectors are installed. They need to ensure that they have coverage against these, and against any natural disasters to which the area is prone.