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Front Light Insurance

6 Reasons Every Tenant Should Have Renters Insurance

renters insurance

Landlords purchase insurance to protect their property and cover their liability. Tenants should do the same. A renters insurance policy can protect a tenant’s possessions and offers liability coverage in the event of an accident or other disasters. Here are six reasons every tenant should have renters insurance.

What Is Renters Insurance?

Renters insurance is a policy available to people who rent out a property. Since the tenant does not own the actual property they are renting, this insurance protects the contents of the tenant’s apartment and offers liability coverage if issues arise. Every renters insurance policy is different, so it is important for the tenant to understand their specific policy, including the amount of coverage, as well as what acts and events, are covered.

6 Reasons Every Tenant Should Have Renters Insurance

Tenants Are Not Covered By Landlord’s Insurance:

  • Some tenants mistakenly think they are covered by the insurance policy for the building. The landlord’s insurance only protects the physical structure and any of the landlord’s possessions. If the tenant does not have insurance and there is a fire at the property, the insurance for the building will not cover the tenant’s possessions.
  • Landlord’s Insurance Does Not Cover Tenants

Affordable Policy:

  • Many tenants do not purchase renters insurance because of the cost. It can actually be very affordable. Most renters insurance policies run between $100 and $200 a year. The cost will vary depending on factors such as the amount of coverage and the location of the property.

Liability Coverage:

  • A renters insurance policy usually includes liability protection. For example, if a guest comes over and slips and falls on the property, most renters insurance policies offer liability protection that would cover the tenant for this incident. The amount of protection will depend on the terms of the individual policy.

Fire/Wind Coverage:

  • A renters insurance policy can offer protection if a tenant’s possessions are lost or damaged by a fire or from wind damage, such as a tree falling on the property. Depending on the policy the tenant chooses, they can either receive actual cash value for their possessions or the replacement cost. Replacement cost policies are usually slightly more expensive.

Theft Coverage:

  • By choosing a renters policy, the tenant can also be covered if there is a theft or burglary at their property. Again, the amount and type of coverage will depend on their individual policy.

Additional Protection for Landlord:

  • A renters insurance policy is additional protection for the landlord. If there is an accident in the tenant’s unit or their negligence causes damage to the property, the renters insurance policy will be targeted first. This can prevent the landlord from having to file a claim with their insurance company.

If you live in the Culver City, CA area and are interested in learning more about renters insurance. Frontlight Insurance will be happy to talk to you on the phone or in the office.