Your renters pay good money to rent an apartment – so the thought of spending extra for renters insurance may be off-putting. Unfortunately, your property insurance probably doesn’t cover the belongings of your tenants. Find out why it’s worth encouraging your renters to enroll in renters insurance to protect their personal property.
What is Renters Insurance?
Renters insurance is the best way for a renter to protect their possessions. If a natural disaster, break-in, or other unplanned catastrophe causes major destruction and loss of personal possessions, will your renters be able to afford to cover everything?
Most likely, they’ll want some help in replacing their furniture, technology, appliances, and belongings, which can cost thousands of dollars.
What does Renters Insurance Cover?
- Renters insurance covers your renters’ possessions from common incidents, such as:
- Weather events – Snow storms, high winds, hurricanes, and other natural disasters that cause damage to apartments and property; landlord’s insurance may cover unit repairs, but it won’t reimburse your renters for the loss of the value to their items.
- Liability for third-party damages and property damage – Your tenants are protected against property damage caused by themselves or a visitor to their apartment, as well as against medical damages resulting from injuries.
- Fire, explosions, and smoke – A fire in an apartment building could cause smoke damage to your tenants’ furniture and clothes.
- Water damage – Water damage may be covered, depending on the policy, or your renters may need a separate policy to cover flooding.
- Theft and vandalism – If the property is destroyed or defaced, your renters will get money to replace it.
- Short-term housing costs – If the apartment is damaged and your renters need to live in a hotel temporarily, renters insurance can be able to cover the costs.
Additional Benefits of Renters Insurance
It’s wise to encourage your renters to invest in this type of coverage, as it’s difficult for renters to foresee the collective cost of their belongings. Renters often underestimate how much money it would require to replace all of their clothes, furniture, and appliances. Even if these items aren’t top-of-the-line or worth a lot individually, they’ll add up quickly when needing to be replaced concurrently. Based on the coverage policy, renters can gain the peace of mind of knowing that an already stressful situation – like a natural disaster or break-in – can be softened by the assurance of content coverage.
The benefits make it clear: To get great protection, your renters need renters insurance.