From Surf Wiki (app.surf) — the open knowledge base
Renters' insurance
Insurance policy for a tenant's personal property and liability
Insurance policy for a tenant's personal property and liability
Renters' insurance, often called tenants' insurance, is an insurance policy that provides some of the benefits of homeowners' insurance, but does not include coverage for the dwelling, or structure, with the exception of small alterations that a tenant makes to the structure. It provides liability insurance and the tenant's personal property is covered against named perils such as fire, theft, and vandalism. It also pays expenses when the dwelling becomes uninhabitable. Due to renters' insurance existing mainly to protect against losses to the tenant's personal property and provide them with liability coverage but not to insure the actual dwelling, it is significantly less expensive than a homeowners' policy.The owner of the building is responsible for insuring the dwelling itself but bears no responsibility for the tenant's belongings.
General requirements
Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters' insurance. If the tenant damages the premises, the landlord and other tenants can recover against the perpetrator's insurance. It is important to know what type of damage your insurance covers. Essentially, there are three types of coverage available: loss of use, personal property, and personal liability.
Tracking renters' insurance
Multiple companies track renters' insurance in apartment complexes by requiring the tenant to purchase insurance, while maintaining a database of expiration dates, cancellations, and additional information for the property owner/manager to use to ensure coverage for all units. Among the companies that track renters insurance, there is some variation in methods. Some companies primarily track their own policies, while others will track a combination of their own issued policies and third-party policies submitted by tenants. By using additional interest tracking, management companies and property owners gain a more complete picture of the insurance profile of their properties by receiving notifications in the event there is a change, cancellation, or lapse to an insurance policy held by a tenant. A limited number of communities require that tenants list them on the policy as additional insured. This actually makes it more difficult for a property owner or manager to recover from a tenant's liability policy because the additional insured is a party to the policy rather than a third party, which would be eligible for coverage.
References
References
- "Details Buried In The Fine Print of Renters Insurance Policies - NASDAQ.com".
- (2011-02-11). "Requiring Renters Insurance?". American Rental Property Owners And Landlords Association.
- Leshnower, Ron. "Renters Insurance FAQ". about.com.
- "The Truth About Renters Insurance". Rentalchoice.com.
This article was imported from Wikipedia and is available under the Creative Commons Attribution-ShareAlike 4.0 License. Content has been adapted to SurfDoc format. Original contributors can be found on the article history page.
Ask Mako anything about Renters' insurance — get instant answers, deeper analysis, and related topics.
Research with MakoFree with your Surf account
Create a free account to save articles, ask Mako questions, and organize your research.
Sign up freeThis content may have been generated or modified by AI. CloudSurf Software LLC is not responsible for the accuracy, completeness, or reliability of AI-generated content. Always verify important information from primary sources.
Report