Hunting for a flat is stressful, fun and opens your eyes at the same time. When you set a monthly budget to find out where you can really afford to live in a city, it turns out that many landlords in the area expect potential tenants to take out tenant insurance. Can a landlord make you get renters insurance?
Is having a tenant insurance policy really worth it?
Yes. Tenant’s insurance covers the cost of personal belongings in the event of damage, loss or theft. Most people think that they do not need renters insurance because they falsely believe that they are not exposed to disaster or theft. According to Safe Guard the World, there are 2 million home burglaries per year, with a burglary every 13 seconds. After plundering your space for electronics and jewelry, thieves leave hundreds and sometimes thousands of dollars richer, and you can pick up the parts.
Unfortunately, most tenants make insurance decisions under the impression that the owner’s insurance will cover all their property in the event of theft, fire or natural disaster. This is simply not true. The landlord’s insurance covers only structural damage to their property, it does not cover the personal property of the tenant.
Why does my landlord want me to buy tenant insurance?
Insurance for tenants is an additional layer of protection against liability for owners.
In the event of serious property damage, the owner’s insurance policy should cover the damage. However, the landlord still has trouble paying the deduction. It can cost thousands of dollars. If the damage to property was the result of negligence on the part of the tenant, the landlord’s insurance company may enter into a settlement agreement with the landlord’s tenant insurance, instead of claiming the owner’s policy.
What are the benefits for the owners?
By requiring tenant insurance, landlords potentially avoid claims from tenants for damage to property caused by fire or other insured losses. Tenant tenant insurance policy can help you:
- Transfer costs. Tenants’ policies may cover temporary housing costs due to natural disasters or fires.
- Protection against property damage. If the tenant’s property is stolen, the tenant may sue the owner for not protecting his property. However, if the tenant’s insurance covers damages related to their lost items, they are less likely to sue the owner for damages.
- Damage or injury to pets. A rental insurance policy can help reduce the risk of damage or injury caused by pets to other people or their property. However, if your pet does harm to your home, it may not be covered by your tenants’ policies.
- Rental insurance premiums. Because tenants’ policies potentially cover the cost of damages to the tenant’s personal property, there may be fewer claims against the landlord’s housing policy.
- Control of potential tenants. Like a tenant’s credit assessment, requiring proof of tenant insurance can be an indicator of the potential tenant’s ability to pay rent on time.