You may wonder why you need to have tenant insurance. A typical landlord’s insurance policy only covers the structure of the building. But tenants expect their landlord to replace their belongings. That’s where renters insurance comes into play. In case of an emergency, you can pay your renters’ insurance premium to cover their costs while they’re displaced. Tenant insurance protects both landlords and renters from the costs of displaced tenants and reduces the stress of both parties.
Tenant insurance covers the personal property of the tenants and doesn’t cover the building itself. While a landlord’s policy covers the building itself, tenant insurance protects tenants against the possibility of loss or damage to their possessions. The cost of a standard policy is about $187 per year compared to a thousand-dollar premium for a homeowner’s policy. The standard renters insurance policy also offers liability insurance and loss of use coverage. Other benefits of tenant insurance are not often recognized.
When you have tenants, landlords often ask for a copy of their insurance policy. This copy of the policy will list the limits of coverage, the date the policy was first initialized, and the name of the insurance provider. It is possible that you and the tenants live together in the building, but the landlord must have tenant insurance to protect themselves. In addition, landlords should consult an attorney if they want to make a change to the lease agreement. Furthermore, it’s important to check with your insurance provider whether having tenant insurance will save you money on premiums.
Tenants’ insurance also protects landlords from the financial burden of providing alternative lodging after a natural disaster. A fire, for example, can cause a huge financial burden for a landlord, and without tenant insurance, you may be left with the expenses of putting a temporary tenant up in a hotel. In these situations, a renters insurance policy can provide much-needed peace of mind.
Unlike landlord insurance, renters insurance also includes liability coverage. The policy will pay for repairs to the building, even if the tenants don’t pay them. Likewise, tenants can benefit from medical payments to others and liability coverage. These coverage options can make a huge difference in terms of medical and legal expenses. When your renters don’t pay for renters insurance, it’s a red flag that they don’t have it.
Regardless of your financial situation, you can get tenant insurance through Square One. Their affordable policies can protect your rental property and your finances. Square One insurance starts at just $12 per month. You can choose the coverage you want. The cost of insurance may surprise you, but it’s worth the peace of mind. The cost of renters insurance is worth the cost for both landlords and renters. So don’t be left out in the cold. You can’t afford to be without renters’ insurance!
Renters’ liability insurance protects the landlord from any legal expenses associated with a guest’s injury. Renters’ liability insurance covers medical bills if the guest gets injured during a visit to your property. The insurance also lowers the landlord’s liability. Having renters’ insurance protects your property against lawsuits and saves you from court costs. But even if you don’t own a rental property, you should still have renters’ insurance.