Why Do Landlords Require Renters Insurance | State Farm®
While a rental housing policy covers the building itself for the property owner, a renters insurance policy covers the personal belongings of the renter and also provides liability coverage for certain types of bodily injury or damage. to the property. Purchasing renters insurance with personal property coverage is a smart move. but most tenants won’t buy it unless the landlord requires it.
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what are the benefits of renters insurance?
Renters insurance helps protect the renter. In many cases, a homeowner’s insurance covers only the building. Loss of or damage to personal property caused by theft, vandalism, or fire is generally not covered by a landlord’s policy. Without renters insurance, the tenant may have to bear the financial burden of a loss to their personal property.
Reading: How does renters insurance protect the landlord
a tenants policy could:
- compensate you if your belongings, like a bike, laptop, or TV, are lost, stolen, or damaged.
- protect against liability claims from a guest injured while at your rental.
- cover your personal property, like your cell phone, clothes in a storage unit, or laptop left in your car, no matter where you are.
what are the benefits for owners?
By requiring renters insurance, landlords can avoid renters liability claims due to property damage caused by fire or other covered losses. A renters insurance policy could help with:
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A renters policy could cover the cost of temporary housing due to natural disasters or fire.
property damage protection
If a tenant’s belongings are stolen, that tenant could sue the landlord for failing to protect their property. however, if your renters insurance covers damage for your lost belongings, you are less likely to sue your landlord for damages.
pet damage or injury
A rental insurance policy could help mitigate the risks of pet damage or injury to others or others’ property. however, if your pet causes damage to your apartment, it may not be covered by your renters policy.
rental housing insurance premiums
With the renter’s renters policy potentially covering the cost of damage to the renter’s personal property, there could be fewer claims against the landlord’s rental housing policy.
detection of potential tenants
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Much like a tenant’s credit score, requiring proof of renters insurance can be an indicator of a potential tenant’s ability to pay rent on time.
Is renters insurance required?
The law generally does not require renters to purchase renters insurance. however, given its benefits to both landlords and renters, your landlord has the right to require it before renting a property to you. The landlord can require renters insurance by including a clause in the lease that says, “The tenant must provide proof of renters insurance within 14 days of the lease start date.” /p>
While landlords require renters insurance to help minimize their risks, renters insurance also benefits the renter by protecting their property and minimizing their risk. It is a method to help ensure respect for the property by both parties, keeping the rental in optimal conditions.
If you’re unsure about getting renters insurance and want to understand the benefits, don’t hesitate to contact an insurance agent for help with any questions or concerns you may have.