There are many reasons why renters should consider rental property insurance.
Most tenants aren’t aware that the insurance the landlord pays doesn’t cover the goods of their tenants.
This means that in the case of a water leak, nobody will replace your ruined furniture. The insurance will only cover the wall and floor repairments.
Read on to find out more what rental property insurance covers and how it works.
The two types of insurance
There are two types of insurance: one that covers the actual value of the good (this can get lower over the years) and the full replacement.
- The full replacement means that the insurance will cover the costs of a new item.
- The second insurance type to take into consideration is the actual value of an item.
The second insurance type means that if someone steals your 5-year-old laptop, for instance, you won’t receive enough money to buy a new one.
Instead, you will receive in cash the value of your 5 years old laptop.
Claims of negligence
Renters insurance protects you from claims of negligence too.
For example, if your pets or family do any property damage, the rental property damage will cover it. Also, if someone gets hurt in your home and you get sued, your insurance will cover your legal defense.
For example, if you drop yogurt on the floor and someone slips because of it, you can be held financially accountable if your guest needs medical care.
Not all insurances have this option. Make sure you ask about it when purchasing an insurance policy.
Protects your items in case of theft
Rental property insurance can protect your goods in case they get stolen. This includes expensive computers, jewelry, and almost any other item.
If you have any goods that you can’t afford losing, insurance could be the perfect solution. It even protects your items in case of a fire
One of the worst things that can happen to you is a fire. You can literally lose everything in a matter of minutes.
The building itself might survive, but everything inside will likely be destroyed.
Renters insurance not only pays for your loss, but it also helps you pay for a temporary place while your old place gets repaired.
Protects you from water damage
Water damage is common.
When a pipe bursts, it damages everything in the way of the water. It could be your favorite painting or your laptop.
Keep in mind that rental property insurance covers water damage too.
Final words on rental property insurance
Often ignored, rental property insurance protects all the goods inside your home in case of a robbery, theft, fire, and water damage. Plus, some insurance policies can help you deal with negligence claims too.
Few tenants know that the insurance that the landlord pays doesn’t cover the goods inside the house, only the building itself.
This is why it’s so important for tenants to purchase their own insurance.
If you want to find out more about insurance services, don’t hesitate to take a look at our blog.
If you want to find out more about what we can offer you, check our about us page.