When you hear about renter’s insurance, you will automatically think that it is for the tenants who are going to move into a rented home. However, a landlord may even need to go for renter’s insurance in California in some cases.
To solve your confusion about whether a landlord needs this insurance or not and more questions, here is everything that you need to know about renters insurance.
Coverage of Renter’s Insurance
Before you go for any insurance, it is important to understand its coverage to find out whether it will fulfil your needs or not. Here is what renters insurance covers: –
- It covers the damage caused to any personal property within the premises like electronics, appliances, vehicles and more that are within the premises.
- A renter’s insurance will cover your liability if you get a legal notice to pay a third party for the injuries or damage to their property. This can easily be understood as someone getting injured in your premises or there is a water seepage into the walls of the neighbor because of a leakage in the pipelines at your home.
- Some renter’s insurance even provides you coverage when you are forced to leave your home due to a disaster or some other unavoidable external factor.
Does a landlord need renter’s insurance?
You might feel that renter’s insurance is just meant for tenants who are going to live in a home for rent. However, there are cases when even a landlord can go for renter’s insurance. Here is what you need to know about it: –
- The landlord can go for a renter’s insurance to eliminate and minimize the monetary compensation that has to be paid in case of any dispute between the landlord and the tenant in the future. Such disputes can arise when there is damage to the personal property of the tenant because of some fault in the premises. In this case, the landlord is supposed to bear the cost of the damage and having a good renters insurance will save the landlord from the burden of such an expense.
- Another important reason behind many landlords going for a renter’s insurance policy is that it can help in lowering the amount of the premium that they are supposed to pay for landlord insurance or the insurance of the property. It is even made mandatory by some agencies offering renters insurance in California.
- Some landlords even go for renter’s insurance for additional coverage to avoid any unnecessary financial burden in the future.
Why do you need renter’s insurance?
If you are still not sure whether you should go for renter’s insurance whether as a tenant or a landlord, here are some of the benefits and reasons that will help you in making the right decision: –
- It is needed by both landlord and tenant at times to safeguard the personal property from any sort of damage and to prepare in advance for any type of financial emergencies that can occur in the future.
- Renters insurance can even be taken for medical emergencies to pay for the medical expenses that may happen in the premises of your building.
- Such insurance may even cover your expenses that can incur if you have to leave your premises due to an emergency or external factor.
- Renters who are living with a pet also need to go for renter’s insurance. Special attention must be paid on the clause that explicitly states that the pet is covered within the scope of coverage of the insurance.
- Many times, it is mandatory as per the local laws or is made mandatory as per the rent agreement to go for renter’s insurance. This is another common reason why many people go for renter’s insurance whether they really want it or not.
- College students who are not living in the hostel but are living off-campus in a rented flat also need to go for renter’s insurance. Since they are not earning too much at that time and most of the expenses are borne by the family, it is a wise decision to go for a renter’s insurance to be sure that there is not much burden on the family in case of a financial emergency in the future.