The LandLordStation.com renters insurance guide provides tenants with information regarding insurance for renters. When asking the question “is renters insurance required?” you first need to know what renters insurance covers, whether a landlord decides to require renters insurance, and answer the question “what does renters insurance cover?”
Most people have belongings that are worth far more than they think. A fire or tornado can destroy all of your electronics, your furniture, your kitchen appliances, dishes, and pots and pans. Burglars can break in and steal everything you own. Someone can fall and break a wrist inside your rental and sue you for thousands of dollars or more.
Renters insurance covers the tenant’s personal property and includes some personal liability insurance. A landlord cannot purchase insurance that covers the renter’s property, so it is up to the tenant to do so. What does renters insurance cover? In the event of a catastrophe such as a fire, natural disaster or theft, renters insurance will pay to replace your possessions. If someone is injured inside the property and sues, renters insurance will generally cover all, or part, of the cost of litigation to protect your future earnings. Of course, each policy and each state is slightly different.
A landlord can include a stipulation in a lease that requires all tenants to carry a certain amount of renters insurance prior to moving in. A requirement that tenants have renters insurance is legal, as long as it is applicable to all their tenants. Landlords can purchase insurance for the structure, and to cover liability coverage for incidents in common areas, but they cannot purchase insurance that covers your belongings, or incidents that occur inside your dwelling.
In some states, a landlord can require that s/he be listed as secondary insured on your renters insurance policy as a condition of your lease. Your landlord can also specify the minimum amount of coverage you are required to purchase.
At this time, there is no legal requirement in any state that the tenant must purchase renters insurance. However, landlords can require that you have renters insurance in order for you to live in their property. You will either have to purchase insurance, or find a property that does not require it.
What does renters insurance cover? Of course, each policy varies but you can choose from a variety of benefits. Renters insurance can cover furniture, clothing, electronics, kitchen utensils, appliances, books, and other household furnishings. Some policies offer additional cost riders that will cover things such as jewelry, art and other personal items. In addition, some policies will cover the cost of a hotel if you have to move out due to damage, and pay for cleaning and moving fees. These particular additions can even cover the cost of a broker’s fee for finding a new place to live. However, renters insurance does not cover damage that you do to the dwelling.
The cost of renters insurance can be less if you have dead bolts, fire alarms and other safety items installed. You can request that your landlord pay to install these items, but landlords are not required to do so. Many insurance companies will offer discounts if you purchase insurance for your automobile, motorcycle, boat, etc. from them as well.
The LandLordStation.com renters insurance guide allows you to stay updated on requirements for renters insurance in order to answer the question “is renters insurance required?” and the question of “what does renters insurance cover?” and give you general information regarding renters insurance.
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