As a fire happens in the middle of the night, your dishwasher or washing machine overflows and will flood, which causes property damage. Question number one which always pops to mind is whether or not a tenant had insurance. It’s difficult enough to lose the possessions and the lifelong memories which were instilled in the belongings lost during a fire, yet as you have to additionally face starting over without insurance protection backing you up, things might look very grim. Here we list why tenant (renter’s) insurance is critical for tenants:
Protects your possessions
The personal things in your house which are lost are going to be covered through your insurance. Everything that ranges from clothes to electronics may be covered for events like theft, vandalism, fire, an act of God, etc.
Can offer you temporary housing
Tenant insurance has the ability to cover the costs of temporary living arrangements until it’s possible to either go back to your dwelling or locate one other place to live.
Offer protection for visitor’s injuries
While you are pretty certain that your mom will not sue you if she becomes injured during a lunch visit, you cannot be so certain about the handyman you’ve hired to put up the chandelier. You may be held liable for all injuries which might happen on your property. Renter’s insurance may assist in protecting you from monetary loss if an accident occurs.
Cover others’ possessions
In the case above, if the fire spreads to an additional unit your insurance may cover the expense of replacing things that belong to the additional tenant.
Why do Landlords Require Tenant Insurance?
As soon as you welcome anyone to live in your house or buy a residence which houses tenants, you will have to immediately invest in rental insurance. Do not assume that the homeowner insurance you have is going to cover things if theft or accident should occur. The moment you take on a tenancy agreement you must change the insurance over to a landlord policy. If you don’t do so, it may result in non-coverage of your homeowner policy you presently have in place.
Anyone who does not take the effort or time necessary to buy tenant insurance is putting their financial future at risk. For the minute price of $20 to $30 a month that it will take to put this type of policy into place, it’s well worth the expense. You will have the ability to rest better at night with the knowledge that you’re covered, and it certainly is a tiny amount to pay for that peace of mind.
Renter’s insurance (Tenants insurance) is an affordable and flexible method for renters to have peace of mind and protect possessions and themselves. Homeowners would not consider going without home insurance, and with the fairly low expenses of Tenants insurance, renters also should insure themselves against loss.
For more information on the importance of tenant insurance contact one of the most reputable property management companies, Pyramis Company today!