Property Insurance A Must For Tenants As Well As Landlords

Property Insurance A Must For Tenants As Well As Landlords

A single parent renting a condo, a family of four leasing a garden home, a bachelor renting an apartment and a captain living in military quarters have at least one thing in common. They all need renters ­insurance. Despite its relatively low cost, 75 percent of renters have no insurance for their personal belongings and furnishings. The mistaken belief is that a landlord can be held responsible for virtually everything that might go wrong. However, if flames engulf your garden home or a thief breaks into your apartment, renters insurance may be your only financial recourse.

Generally, personal belongings are protected under the contents portion of renters insurance. Contents coverage will cover belongings (up to the limits of the policy and minus the deductible) that are lost or damaged by a named peril such as theft, fire, windstorm, vandalism, smoke, etc. There are some exclusions and limitations to contents coverage. Jewelry, for instance, is generally covered only up to $1,000 if it is stolen.

The liability portion of a renters policy gives you protection in cases involving bodily injury to other people, such as the repair man who tripped on your area rug. It also covers damage to someone else’s property for which you might be held legally responsible. For example if your bathtub overflowed and your downstairs neighbor were flooded, your liability coverage would come into play.  Liability coverage also insures you in your personal activities if you are legally liable.  For example, if you were playing golf and injured someone with the ball, your liability insurance would pay that person’s medical expenses up to the policy limits.

The amount of coverage depends on the value of your belongings. Regardless of its cost, there is satisfaction knowing that you are protected should something go wrong and/or legal action be taken against you.