Renter’s insurance includes different forms of insurance that are collectively intended to protect tenants from various risks. Insurance companies will differ on the types of coverage offered, as well as the exclusions and specified dollar amounts. There are two basic types of renter’s insurance:
- Liability insurance covers claims made against you by others for injuries sustained while on your property as a result of your negligence.
- Property insurance involves your own loss of contents of your home caused by accident, fire or theft.
Insurance companies will differ on what they exclude from coverage. Some common exclusions include:
- Tenants’ intentional activities that cause injury to others
- Damages from plumbing or wiring installed by a non-certified person
- Personal liability that results from especially hazardous activities
- Losses arising from commercial use of the premises
Renter’s insurance is important because without it, a renter can face considerable financial risk. It may be especially important for tenants with expensive belongings, for example. Without owning the building you live in, you probably still have valuable belongings that would be costly to replace if damaged or stolen. In addition, you want to be protected from liability if someone is injured on your property.
Typically, a landlord’s insurance policy does not cover a tenant’s property or injuries which occur within rental units where the tenant is negligent. A landlord’s policy is more likely going to refer to the common areas of the building and its physical structure.
No, a renter¿s policy held by one roommate will generally not cover the property of the other.
Renter’s insurance can protect you from large financial liabilities and losses. An experienced landlord-tenant attorney can help you determine whether renter’s insurance is right for you.