There are many assumptions out there about insurance covering the renter’s belongings, and it’s important that renters understand the process. While you may feel like it’s not your responsibility to tutor tenants on renters insurance, in the long run, it could save a lot of grief for property managers in Fair Oaks.
What is Renters Insurance?
The landlord’s insurance will cover the walls that surround your unit, the ceiling or roof that covers your head and the floor under your feet. Once you get into the apartment, your furniture, clothingworkplaceand electronics are not covered in the event of a disaster or theft.
Renters insurance costs an average of $200 per year, which is approximate $16 a month, yet most tenants do not have an insurance policy. They’re under the mistaken impression that they don’t need it or they don’t even know that they are eligible for insurance. They believe that it’s only for homeowners.
Coverage Beyond Landlord’s Insurance
Unfortunately, the landlord’s policy might not cover these disasters. It will depend on what they have for coverage. The tenant will want to have specific coverage for their belongings. When their furniture is ruined by spraying water from the sprinkler malfunctioning, they won’t want to hope and pray that the landlord policy will cover issues. It most likely won’t cover the tenant’s furniture or electronics.
Damage Not Covered
Many people are not aware that they need a separate policy for floods available under the National Flood Insurance Program. If you live in an area prone to earthquakes, that coverage can be added as a rider to the basic policy.
Coverage Away From Home
When the tenant goes on vacation, luggage and electronics can be covered by renters insurance too. Items held in a storage unit would be covered in the event of an emergency, which is something most renters don’t know about their policy.
The coverage of the renter’s policy could pay for legal fees if the tenant has to hire a lawyer or a professional who will help clean up their credit. When choosing a policy, the tenant should be thinking about all the scenarios that could happen. Insurance coverage is meant to save time and money as well as replace items lost due to disasters and theft.
Provide a Roof Over the Tenant’s Head
The coverage will depend on the type of policy as well as the type of disaster, but there’s a good chance that the tenant won’t be left out on the street in the event of a disaster. The landlord policy might not cover those expenses.
Renters wondering “what is renters insurance?” will be able to make an informed decision about buying a policy to cover their belongings. Some landlords and property managers are starting to make renters insurance a requirement for tenants since it protects everyone.