Obtaining rental insurance is an important step in becoming a responsible tenant. It helps protect you as the tenant from any financial or actual losses due to unexpected events such as acts of God or accidental damage to the property. With rental insurance, tenants can be sure that their assets and contents are covered even if the landlord does not have insurance on the dwelling. Rental insurance is low-cost and low-risk; it’s available from most insurance companies, and stands in the gap to protect tenants from loss and liability in the event of a natural disaster, water event, fire, tenant negligence, or landlord negligence.
For example: in the case of pipes bursting from freezing weather, rental insurance can provide coverage for any damage caused by the accident, and it helps tenants avoid costly repairs or replacements (freezing pipes damage is considered a tenant negligence and a landlord’s policy typically won’t cover this). It can also help cover medical bills if someone is injured on the property due to tenant negligence. Rental insurance is becoming increasingly popular among renters who want to make sure they are protected from potential financial losses, largely due to landlords requiring it.
It’s easy to obtain rental insurance, and it is relatively low cost compared to the peace of mind it can provide as well as compared to the cost of a total loss of household goods. As a landlord or tenant, you cannot be too careful when it comes to protecting your assets, and rental insurance is one way to ensure that you are covered in case of any unexpected events. If you don’t know where to start, call your automobile insurance provider and ask if they offer this rider.
If you’re a landlord, it’s likely that you already have insurance for your investment dwelling; a standard owner’s policy covers the cost of repair or reconstruction in an accident or natural disaster. For instance, if a water heater bursts (doesn’t happen often, but I just saw one do this over the Christmas holiday!) due to no fault of tenant, it’s common for the owner’s insurance to pay for the home repairs. If the tenant suffers a loss due to this, the landlord’s insurance policy will not pay out for the tenant… this is a real life example of why it’s wise to own a rental policy as a tenant… you hope you’ll never have to use it, but if you do, you’ll be so glad you have it!
Another real life example of how rental insurance can save the day: most would assume that any home (owned as an investment property or as a primary dwelling) would carry homeowner’s insurance, but this is not always the case. In a class recently, I heard of a property lost by an electrical fire. The property was a total loss and burned down at no fault of owner or tenant. The owner owned the home outright, so there was no owner’s policy legally required to cover the property (and they did not have any) … the tenant had a renter’s policy that covered their belongings, but the owner had a very bad day… they had no one to pay to rebuild the home, meaning they had to cover this cost themselves!
Many leases today stipulate that tenants are responsible for obtaining their own renter’s insurance. In fact, the most proactive property management companies require evidence of rental insurance when tenant picks up keys. With monthly, quarterly, and annual fee options, this type of insurance is far and away worth the cost as a tenant. You are in control when it comes to deductible, coverage amount, and additional liability coverages… if you’re a tenant and do not yet have renter’s insurance, you can still get a policy mid-lease.
If you’re new here, hi! I’m Hope, I am a Georgia native and live in Houston County, GA with my husband, 2 kids, and 3 dogs. I offer over a decade of experience in listing, selling, renting, and investing, and I strive to protect tenants from predatory practices in real estate. When I’m not selling homes, you’ll find me spending time with my family, reading, listening to music, or playing with the dogs.
I’m a Realtor, an Accredited Buyer’s Representative, and a Military Relocation Professional. I love learning and problem solving… it’s why I love what I do! I inform my clients so that they’re able to make well-informed decisions with fewer regrets. I’ve been with Golden Key Realty, Inc. since 2012 and was raised in a construction family, so it’s what I know best. If you have any questions about real estate in general or about buying, renting, or selling a property, let’s chat!
