11 Jul Rental Property Vs. Renters Insurance

Choosing the Right Insurance Is Key

If you are a landlord or a renter, you will want to ensure that you have the right type of insurance should something happen to go wrong. When a disaster strikes, you will want to make sure that you are armed with the right insurance.

Landlords Need Rental Property Insurance

As a landlord, you are fully responsible for the structural integrity and safety of your dwelling. If a tenant gets hurt due to a repair that should have been made by you, but it was not taken care of in an expedient manner, you will be happy that you have a catastrophic coverage clause in your policy that may cover you if it can be proven that it was not gross negligence on your part that caused the injury. Rental property insurance also covers your structure in the event of a natural disaster, fire or water damage. For pennies on the dollar each month, you will be able to have peace of mind while people are living in your house. If a tenant’s friend or family member is injured in your home, insurance can also keep you out of legal and financial trouble.

Tenants’ Possessions Need Protection as Well

As a tenant, renters insurance covers all of the possessions that you have in your rental property. Renters insurance is also used when there is damaged caused in a dwelling that is your fault. If you have a clothes washer that floods and causes damage to your landlord’s hardwood floors, you will be very glad that you do not have to pay for replacement floors completely out of your pocket. Renters insurance may also help offset some of the costs that are incurred when a tenant loses portions of a security deposit due to damage.