Renters Insurance – Do Landlords Require It?

Is has become very common for landlords to require that tenants have a renters insurance policy. That is because this type of policy provides the landlord additional protection if there is an accident or injury on the property.Here is an example. If your satellite dish blew of the roof and caused injury or property damage, a claim could be made on your renter’s policy. If you didn’t have one the injured party may try to claim against the landlord instead.A renter’s policy will have two main types of coverage’s. One coverage will be for your personal property. You usually you get $10,000 or more for that. The landlord will be most concerned with you having liability coverage. Typically landlords will require that you have at least $50,000 in liability coverage. Some landlords will want a limit of $100,000 or even higher. The cost to increase the liability limit is very low so you may want to go higher even if it is not required.Most renters’ policies will have a variety of other benefits. If your residence suffered covered damage a good policy would cover the expense of renting a temporary place to stay while repairs are done. Your policy may also provide for emergency first aid to others at the time of an insured accident. There can also be coverage for your personal property away from home. An example of this could be if property got stolen out of your car. Property away from home will usually be a percentage of your total personal property limit. Some policies will also provide identity theft coverage. If someone makes fraudulent use of your identity this can help cover the damages.Fortunately this type of policy is quite inexpensive. I am in the Houston Texas area and a minimal policy usually costs about $10 to $14 per month. For inland areas with reduced hurricane risk the rate will probably be less. A renter’s policy will usually qualify you for a discount on your auto policy if you get it with the same carrier. As an insurance agent I would strongly suggest considering this type of policy if you are a renter. Even if the landlord doesn’t require it!As disclaimer, there are many different types of policies so have your agent review what is covered. Be sure to ask your agent what upgrades are available. All policies have conditions and exclusions, so features may vary from what I described.

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