02/20/2024
RENTERS INSURANCE VS. LANDLORD INSURANCE: WHAT'S COVERED?
What Tenants Should Know About Renters Insurance 🏡
Myth #1: If the house or apartment you are renting floods, burns down or is destroyed by a natural disaster, the landlord’s insurance will cover the cost of replacing, only covers the physical building and any outbuildings. It also protects the landlord against lawsuits stemming from accidents on the property.
FALSE: The landlord’s insurance does not cover the tenant’s personal possessions. Unfortunately, this information shocks many tenants after disaster strikes, which of course, is the worst time to find out they’re not covered.
Myth #2: My landlord cannot require me to have renters insurance.
FALSE: Although there are many federal, state, and sometimes local landlord/tenant laws that regulate what a landlord can and can’t do, no law prohibits or constrains a landlord who requires that tenants have renters insurance. The landlord can require proof of insurance and ask to see updated documents on a regular schedule. There isn’t a law that prevents a landlord from making these check-ins part of the lease agreement. The check-ins protect the landlord from gaps in the coverage. A landlord who has an insurance requirement could evict tenants that fail to keep a current policy. The landlord can list this requirement as an obligation in the lease. Tenants can choose not to rent from the landlord if they do not want to buy insurance.
Unquestionably, any renter or landlord would benefit from adequate renters and landlord insurance. Without these critical protections, tenants leave themselves exposed to severe property loss or liability claims.
Myth #3: If someone gets hurt in my rented house, the landlord is liable.
NOT NECESSARILY TRUE: This is a question of liability. If your cable guy trips on the front walk, he’ll probably sue your landlord. But if the repairman takes a swan dive over a poorly positioned coffee table inside your apartment it will not be your landlord's problem. It will be yours.
Renters insurance protects your interests should someone have an accident within your house.