Renters Insurance – The past couple of decades have offered us much needed insight on increasing issues which may involve insurance in a growing population. As a result of multiple municipalities with an increasing load of Small Claims Cases, some States have required Renters Insurance to be a requirement within the Standard Lease Agreement.
In many cases, insurance companies can communicate and settle on damages without the necessity of the gruesome process of going through the Court system; for this to happen, the Landlords must be properly insured AND the Tenants must be properly insured.
Not only is there a long list of benefits to carrying Renters Insurance, the policies are very inexpensive; depending on the amount of coverage required, the annual premium can be as low as $80-$120 in most areas of the country.
Apartments, Condos and Homes get robbed, water damage occurs from leaks and damaged plumbing, fire and smoke destroy personal belongings and people get hurt due to negligence.
Renters Insurance policies not only cover your personal contents but also provide liability protection should your negligence cause a loss to the property of others. In addition, most policies allow Loss of Use or Additional Living Expenses for a covered loss.
A tenancy agreement is a contract between the Landlord and the Renter; insurance can be included in this contract as a requirement. If the Renter agrees to the contract, then it is agreed that Renters Insurance will be mandatory during the term of the lease.
Renters Insurance premium is a very small price to pay in comparison to the coverage afforded and in comparison to the Rent of the Dwelling Unit. An average one bedroom unit may cost a minimum of $1,100 per month in most areas of the country, where a minimal Renters Insurance Quote may be as low as $80 – $120 per year.
Although most tenants know and understand that the Landlord is not responsible for the damage or theft of personal belongings, it is often that after a loss, the tenant tries to claim damages from the Landlord for the replacement of personal belongings.
Likewise, if there is a property loss due to the negligence of the tenant, why would we simply assume that the Landlord will pay for the damages or agree to filing an Insurance Claims against his/her insurance policy? If damages are caused by the negligence of the tenant, it may be more intuitive for the tenant’s Renters Insurance Policy to pay out under the Personal Liability coverage afforded by the policy.
With the presence of a Renters Insurance Policy, not only is the Tenant covered for the loss of personal belongings and Personal Liability Insurance, but the Landlord has peace of mind that the tenant is a responsible individual providing insurance coverage to protect the Landlord’s interest in the event of the tenant’s negligence.
If a loss should occur, the presence of the insurance policy will help avoid confrontation or any negative feelings between parties thereby coming to a fair settlement among the insurance companies.
If a tenant truly doesn’t care about insuring the personal belongings, there is a simple solution. The tenant would obtain an insurance policy for only the Minimum Personal Contents Coverage available with the Maximum Deductible available by the chosen insurance carrier; all companies will offer a minimum of $100,000 Personal Liability Insurance which isn’t subject to the Deductible in most cases; this way, a minimal policy may be purchase for a minimal premium thereby satisfying the Landlord and keeping the peace!
If purchasing a policy isn’t agreeable to the tenant, there will be no agreement; thus, both the tenant and Landlord would be better off disconnected from such a relationship.
Each year, more and more Landlords and Management Companies are requiring insurance in order to avert an ongoing increase of issues which insurance would settle. For more detailed information, you should consult one of our representatives who will be able to answer your specific questions.