Renters Insurance
Friday, October 5, 2018
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What Does It Cover and Who Needs It:
Many of renters either do not know about homeowners insurance
available to them or simply do not take advantage of this type of
insurance. Many more renters feel that renter’s insurance is either too
expensive or not necessary given their living conditions. Still others
have valuable furnishings, which if damaged by flooding or burglary will
need to be replaced.
Why should a “renter” have an insurance policy when his landlord owns
the structure rented? Because the landlord's insurance does not cover
the renter’s personal property. If the apartment is vandalized or
burglarized the landlord is generally not responsible for the damage to
renter’s personal property.
Personal property such as clothes, electronic devices, furniture,
televisions, jewelry, or personal computers are not covered against
destruction or loss by the landlord's insurance. If the apartment is
flooded, the landlord’s insurance will cover the damage to the structure
and its fixtures but will not buy the renter a new couch.
While the landlord may be sympathetic and concerned about a renter’s
loss, absent some sort of hidden negligence or contractual arrangement,
he or she is not responsible for the renter’s loss.
Renters insurance replaces damaged or stolen personal property of the
renter against damage caused by one of the 17 perils listed in HO-3.
With renter’s insurance, the renter’s personal possessions are covered
against losses from events such as fire or smoke, lightning, vandalism,
theft, explosion, windstorm, and water damage from plumbing.
Some renters, particularly in the high rent districts, have assets
they need to protect. Unfortunately, depending on the state law where
the renter resides, renters can incur liability when someone is injured
on the property they are renting. Renters insurance covers the renter
against personal injury claims resulting from accidents which occur on
the renter’s premises as a result of negligent acts by the renter, a
family member or the renter’s pet, and pays legal defense costs if the
renter is involved in a lawsuit. These legal costs alone can be tens of
thousands of dollars.
A renter’s policy can save the renter money because he or she will
not need to buy liability protection with this type of policy in place.
While renter’s insurance does not cover negligent acts while driving an
automobile, or flying an airplane, it may cover other negligent acts
committed by the renter off site of the rented premises.
Renter’s insurance is also handy to have if a homeowner is merely
renting while his or her home is being built or rebuilt, or in escrow
awaiting the prior homeowner’s departure. The last thing a new homeowner
needs is to have his or her personal possessions stolen or destroyed
before they have even moved into their new home. In this case short term
renters insurance can protect those valuable treasures and heirlooms
through the moving process.