Renters’ Insurance

What Is Renters’ Insurance?

Renters’ insurance is an insurance policy that provides liability coverages for a tenant in the event of fire, theft, and vandalism. The insurance policy helps to mitigate against losses to a tenant’s personal property within the rented property. 

Deeper Definition 

If you live in a rented apartment, condo, or home, there is a need for you to protect yourself, your visitors, and your property against any possible damages. You may not be able to prevent certain situations, such as theft, vandalism, or a visitor’s injury.

Renters’ insurance, otherwise known as tenants’ insurance, offers additional benefits that the homeowners’ insurance fails to cover. Some landlords require tenants to provide proof of renters’ insurance before moving into an apartment. That is because the tenant’s personal property is not covered in the homeowners’ insurance. For instance, if thieves break into your home and cart away with some of your properties, your landlord’s policy may not help to cover the loss.

Since homeowners’ insurance focuses on the structure alone, it is very important for tenants. Without it in place, the tenant would bear the brunt in the event of damages to their property. The following are reasons why a tenant should get the coverage:

• Protection of their property since the landlord’s policy covers only the building.

• To protect themselves and others if they suffer injuries on the premises.

• To ensure they would have somewhere to live if there is damage to the apartment that requires them to vacate temporarily.

Renters’ Insurance Example

Renters’ insurance provides coverage for any loss to a tenant’s personal property due to theft, fire, among other events. It also provides coverage for bodily injury suffered by a tenant, their family members, pets and visitors, if it occurred within the confine of the apartment.

Most renters’ insurance comes with Additional Living Expenses (ALE). It is for when the tenant has to leave the apartment due to damage that makes it inhabitable. ALE would cover the tenants’ temporary rentals and other living expenses while a rental home is being repaired.