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Many renters do not realize that they are not protected from loss due to theft or liability. They mistakenly believe that the landlord’s insurance policy will cover their belongs and pay for injuries that occur on the property. In reality, the landlord’s insurance policy only covers damage to the building and surrounding property. It does not cover renter property nor does it remove renter liability. Only renter’s insurance can cover all of that.
Renter’s insurance covers the personal property of the renter. If the building is destroyed in a fire, the landlord’s insurance policy will pay to rebuild the building but it will not pay to replace your personal property. Renter’s insurance policies are very affordable and will pay to replace any personal property renters lose if the home is destroyed in a disaster. This policy will also cover property that is stolen from the rented home or apartment.
When you rent your dwelling, you are accepting all liability for accidents that occur on the property. The landlord’s insurance property will not protect you from legal liability if your dog bites the neighbor. However, the landlord’s policy will cover accidents resulting from faulty property fixtures such as poor wiring. Renter’s insurance includes a certain amount of general liability protection. Additional protection can be purchased in the form of a general liability rider. This insurance will protect your assets in case of a lawsuit.
No one wants to pay too much for insurance. Fortunately, a renter’s policy typically costs much less than other forms of insurance. The landlord already has insurance on the value of the dwelling and accidents caused by the fixtures of the dwelling. This makes up the bulk of insurance liability and leaves the renter with a small monthly premium.
Most renter’s policies have a limit to the amount of personal property coverage. If you own high dollar property such as jewelry, only a portion of the replacement cost will be covered. You can purchase additional protection through a personal property rider but this is in addition to the base renter’s policy.
Many insurance companies will not issue renter’s insurance to people that own certain breeds of dogs. These dogs are viewed as excessive risk and can result in a denial of insurance. There are no additional riders to cover these breeds so you will need to inquire about animal restrictions before you apply for a policy.