If landlords have the advantage of purchasing an insurance plan for added protection and liability, tenants shouldn't be afraid to do the same as well. Here are a couple of reasons on what makes a renter's insurance just as crucial.
What Is Renter's Insurance?
As the name itself says, it's a policy for those interested in renting a property. Because a tenant doesn't own the place he's staying in, this type of insurance plan provides liability coverage by protecting the tenant's belongings if ever any unexpected issue arises. However, a renter's insurance policy varies from the other, so every tenant must understand the particular system they have, which includes the covered events and the amount of coverage.
What most tenants fear the most is the price. Little do they know, however, that purchasing renter's insurance can be quite affordable. Most of the time, the policy only costs from $100 to $200 in a year. The costs will only vary because of the several factors that may be included, such as the property's location and the coverage amount.
Liability protection is typically included in the policy. A typical example is when a visitor accidentally slips and falls while being inside the property, the insurance company will cover the tenant for this incident because of the given liability protection. How much protection is provided will depend on the terms and conditions of the policy.
Another advantage is that it offers protection if belongings are damaged due to natural calamities, such as a falling tree because of powerful winds. The coverage also depends on the tenant's decision: to receive the value of the damaged possession by cash, or by replacement. The latter, however, are more costly.
Additional Protection for Landlord
The policy, when acquiring a renter's insurance, is that it's an added benefit for the landlord. If an accident does happen in the tenant's room or the negligence of a tenant caused damage to goods or possessions, the renter's policy will be the first target. It prevents the landlord from filing a claim along with the insurance company.
It is a landlord's responsibility to inform their tenants of renter's insurance. If you are a landlord, you should clarify things in your contract that tenants are not included in your insurance policy.
At Mauser & Tobin Co., Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (516) 747-0171 or Click Here to request a free quote.