More and more leasing companies and landlords are requiring renters to buy and maintain renters’ insurance as part of their contract with their landlords. When they do so, this type of insurance provides benefits not only for landlords and leasing agencies but for renters as well. A renters’ insurance policy minimizes certain types of liability for both parties which we will cover below in this blog.
What Are the Benefits of Requiring Renter’s Insurance for Landlords?
Many benefits are available to landlords who require their tenants to purchase and maintain renters’ insurance policies.
These benefits can include:
- Landlords can avoid being held liable by tenants when a tenant’s property is damaged by such events as flooding from broken or burst water pipes, fire, or other injurious events that are not caused by negligence or wrongdoing.
- Landlords can be protected against claims of property damage by tenants if a unit is broken into and a tenant’s belongings are stolen.
- Landlords may be protected against claims of damage to other’s property or injuries caused by a tenant’s pet.
- With the above protections, a landlord’s rental dwelling insurance policy may see fewer claims leading to lower premiums.
- The ability to pay for and maintain a renters’ insurance policy may serve as a good screening tool in finding future tenants who are conscientious and able to pay their rent in a timely manner.
- A renters’ insurance policy may cover temporary housing expenses for the tenant in the case of natural disasters such as hurricanes, fires, or other events; this would relieve the landlord from having to do so.
To make renters’ insurance mandatory, a landlord merely has to include a paragraph in the rental agreement/lease to the effect that the tenant is required to show proof of the insurance policy within a given number of days after the start date of the lease or rental contract.
What Are the Benefits of Renters’ Insurance for Tenants?
A renter’s insurance policy is designed to protect the renter. Most insurance coverages carried by landlords cover their building only. When it comes to your personal property that is contained within your apartment or rental unit, the landlord’s policy will not cover it. If you don’t have renters’ insurance, you will be responsible for taking care of the financial cost of loss of your property.
To illustrate, a renters’ insurance policy could cover the following:
- It could compensate you in cases where your personal items are stolen, damaged, or lost; these could cover such valuable items as laptops, computers, jewelry, bikes, exercise equipment, cell phones, and more.
- It could provide coverage of any of your personal property that is damaged by an event such as a plumbing break or leak or an electrical problem.
- If a visitor or guest is injured while in your apartment, you could be protected against any liability claims asserted by that person.
- It could cover personal items stored in a storage unit or temporarily left in your car, such as laptop, cell phone, clothes, furniture, or more.
Need Help with a Real Estate Law Matter in San Diego?
Renters’ insurance is a good idea for both parties in the landlord-tenant relationship. For further help with your real estate legal issues, you can turn to Allen, Semelsberger & Kaelin, LLP, located in San Diego and serving clients throughout California. We are committed to ensuring that you receive outstanding legal service that effectively resolves your legal issue.
Contact Allen, Semelsberger & Kaelin, LLP at (888) 998-2031 to schedule a consultation about your case today.