I’m not sure if it is pure coincidence, the company I keep, or my age bracket, but a few of my friends have recently bought homes with mortgage-helper renter suites.
My friends had no problem renting the suites, but after a quick conversation, I found out these newly established ‘landlords’ have no idea whether or not their tenants carry their own insurance.
It is estimated that less than a quarter of renters have renters insurance. So what’s the big deal? In most cases, the landlord’s insurance policy will only cover structural damage to the building itself. If the apartment were to go up in flames the landlord’s policy would not reimburse the tenant for lost possessions.
As a tenant, you might not think that you have much of real value, but what if you had to replace them all at once, due to fire or water damage? Replacing your clothing alone, could run you a few thousand dollars.
Homeowners, if your tenants don’t have insurance, you are often left out in the cold if the building is damaged.
In addition to protecting personal property, renters insurance also protects in the event the tenant is responsible for injury or property damage to others. That means they’ll likely be protected if someone slips and sprains his or her ankle at, oh let’s say, an annual birthday bash. Liability also provides coverage up to your policy limits for your legal defense costs and judgments in a lawsuit, whether an incident occurred within your rented residence or elsewhere.
Let us know if you have any questions, we’re here to help.