Is it Legal for Landlords to Require Renters Insurance?
While it's true that we landlords have policies to cover the cost of the building in case of damage, your contents are not insured. Renters insurance is a special policy that covers a tenant in case of loss.
As well as providing security for the landlord, a renters policy also benefits a tenant in many ways:
--If your possessions burn up in a fire, suffers from smoke damage, or are destroyed by water damage as a result of a burst pipe, your contents will be covered. Even if you don't own much, replacing everything (including clothes, bath & kitchen stuff too) can cost more than you might think.
--Insurance provides coverage in case the apartment is broken into and your personal property is stolen.
--A renters policy protects you (and me) in case one of your friends injures himself in your apartment and decides to sue for the cost of his medical bills.
--You may also be covered if somehow you or a friend accidentally damages part of the house.
--Insurance will even provide you with coverage in case you have to move out due to a covered claim. Most plans will pay for the cost of a hotel stay, moving your furniture, and additional living expenses in case your place is destroyed or severely damaged.
According to Cost Helper, monthly premium costs range from $15-30 depending on where you live and the amount of coverage asked for. Additional coverage for valuables will increase a premium by $30-$100 a year.
For more information about the benefits of rental insurance, costs, and coverage, your family insurance agent can help.
resources:
http://realestate.aol.com/blog/2010/11/16/what-renters-insurance-does-and-doesn-t-do/
http://insurance.equifax.com/2010/10/renters-insurance-do-you-need-it-and.html
http://www.smartmoney.com/personal-finance/real-estate/is-renting-better-than-buying-1298070548426/
Published by C. Jeanne Heida - Featured Contributor in Business & Finance
Jeanne is a small business owner with 25 years experience in the real estate industry. A consistent Y!CN Top 100 writer, her articles can be found at Y!Finance, Shine, Your Wisdom, DEX, and the Scripps Net... View profile
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6 Comments
Post a CommentI had to get renters insurance before moving into my apartment in SLC, UT. I still have it, since it's with my car insurance and only costs about $4 a month. Plus, my car insurance went down because I bundled the 2.
We had a flood in our apartment when a water heater from an upstairs apartment exploded back in 1973. The fire upstairs did not harm us, but all the water putting it out and the water in the tank rained down on us. Things do happen! No renters insurance but the apartment complex carried it so we were covered.
Great info. We have renter's insurance.
I am a huge believer in renter's insurance. before I was married, when I was engaged, our apartment burned to the ground. The woman upstairs lit a candle and it got out of hand. Anyway, we were the only ones in the building with renter's insurance and all the wedding presents and new furniture we bought were lost but the insurance replaced everything.
Used to work for a insurance company, great article!
Good info. We were able to get renters insurance pretty cheap through state farm. It's a good thing to have, especially in a flood zone or in case of a fire.