Renters insurance and landlord insurance are similar policies regarding rental properties, but address potential problems with rental properties from opposite perspectives. Both are extremely helpful for their intended policyholders.
How Does Renters Insurance Work?
This policy is geared toward tenants. When you move into a rental property, the only things you own within the property are your personal possessions. These are items such as cars, computers, televisions, jewelry, furniture, and cash.
Your renters insurance coverage protects your possessions in events such as damage and theft. The type of damage matters – damage incurred through fire, vandalism, lightning, and windstorms are covered. However, most don’t cover natural disasters such as floods or earthquakes (you will need separate coverage for this).
Renters insurance policies only cover certain damaged or stolen items up to a limit – for example, your policy may only pay $1,000 for an item worth $3,000.
It can also cover additional living expenses, such as a temporary stay in a hotel and restaurant meals when your rental property is uninhabitable.
Liability protection is another feature, where the company will cover legal fees in case another person is injured on the renter’s property.
How Does Landlord Insurance Work?
Landlord insurance is made for those leasing the rental properties to tenants. It can be thought of as everything that could go wrong with the structures of the properties themselves. Like renters insurance, this policy covers damage caused by events such as windstorms and fires, but not natural disasters. Landlord insurance will also not cover routine repair or maintenance costs for the upkeep of the property.
If the rental property is not fit for tenants to live in, the insurance company will reimburse the landlord for lost income as a result of the properties being uninhabitable.
And like renters insurance, landlord insurance offers liability protection in cases where an individual pursues legal action due to injuries while on the landlord’s property.
Are They Required?
Neither of these policies is legally required. However, renters insurance is encouraged because it acts as a safeguard against substantial financial losses. Landlords may also require tenants to purchase renters insurance before leasing the property.
Get Your Policy Today
If you’re currently renting a property, or you’re about to rent one, the best time to act is now. At Remco Insurance Services, we’re here to ensure that you will not suffer devastating financial losses when your property is lost or damaged because of something out of your control. Call us today at 215-357-7878, or you can reach us through text at 267-692-8296.