The Johns Family Agency - Do I need insurance if I rent my apartment?

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At The Johns Family Agency, we understand that every client has unique needs and we pride ourselves on our ability to tailor our services to meet those needs. Whether you're a small business owner in need of general liability insurance or an individual looking for a comprehensive auto insurance policy, we have the expertise and the resources to help you find the right coverage at the right price.

As a renter, you need to protect your own property of value, such as, Laptops, TVs, gaming consoles and expensive kitchen items so you won’t have to pay to replace them. Plus renters insurance covers more than your personal belongings at home.

If you’re living in a rental property and want to ensure you, your belongings, property, and guests are covered from any unforeseen circumstances, continue reading our guide to renters insurance coverage below.

Why you need landlord/renter’s insurance

The main purpose of landlord insurance is to protect the property owner from liability claims, and to help them recoup income if the building becomes uninhabitable. Renting a property is considered to be a business, and with landlord insurance, your personal assets are protected in the event of a loss.

Landlord insurance is not required by law. But if you have a mortgage on the property you are renting out, your lending company might require you to have a certain amount of coverage. Your tenants may also request to see proof of landlord insurance before signing a lease for their own peace of mind. If you don’t have coverage, it could potentially jeopardize your ability to rent the units.

The Reasons Why Landlords Require Renters Insurance

A landlord typically requires renters insurance for legal protection. Landlords require renters insurance of their tenants to avoid liability lawsuits. Because most rental insurance includes liability coverage, if someone’s injured in your rental, your renters coverage will help protect the landlord from being sued. Additionally, if you damage the property in the rental, your renters coverage can help you pay for the costs of returning the rental to its previous condition.

For example, suppose you accidentally leave your water on in the bathtub and it overflows. Water then leaks down into your neighbor’s unit and ruins their personal property. Your landlord can hold you liable for those damages. And the landlord may also need you to pay for damages to the floor and drywall in the affected rental units. Whether damage was done to the neighbor’s personal property or the landlords rental property, you’ll be responsible to pay for the damages. Your coverage ensures funds are available for landlords if the unexpected happens. Renters insurance benefits both you and the landlord because it can save you both from paying the full costs that result from certain covered losses.

I thought my landlord’s insurance would cover me?

Sorry to burst your bubble, but your landlord’s insurance covers only their building and any structural damage to their own property — they aren’t responsible for any of your belongings. It won’t cover the loss of your electronics, furniture, jewelry, sports equipment, or collectibles no matter who’s at fault.

Is Renters Insurance beneficial to both lord and tenant’s?

Rental insurance is beneficial from both the landlord and tenant’s perspectives. It reduces stress for both parties and gives both the renter and the landlord peace of mind. This results in a better landlord/tenant relationship even in the event something bad happens.

What Does Renters Insurance Cover?

A basic renter’s insurance policy will cover the following things.

If your apartment is damaged because of a fire, break-in or a natural disaster, your landlord’s policy will cover the expense of repairing the physical damage to the building. You would have to pay out of pocket to replace any damaged furniture, clothing or other personal belongings. By having renters insurance, however, you can limit the amount you have to pay to just your deductible.

Building additions & alterations

Pays for covered damages to additions, alterations, fixtures, improvements or installations that you make to your home.

Helps protect your furniture, clothing & other items from covered losses.

Loss of use

Provides reimbursement for additional living expenses when a covered loss prevents you from living in your home.

Liability Coverage

Liability coverage protects both the tenants and the landlord in the event they are found at-fault for damage to another person the apartment or the building. For instance if the tenant is found to be at fault for a fire that damages the building or the next-door neighbor’s property the tenant would be covered by their renter’s insurance.

Similarly if someone slips and falls in the apartment the tenant could be held financially responsible for the cost of the injured person’s pain suffering and medical bills. With renter’s insurance the tenant and landlord could rely on the insurer to carry the cost in such a situation.

Additional Living Expenses

If something were to happen to your building, like a fire or storm damage, and you have to find temporary living arrangements, your landlord won’t foot the bill. Under a covered loss, your renters policy can cover: The replacement of destroyed personal property Additional living expenses, like a hotel Other qualifying expenses while you’re temporarily displaced

Medical payments to others

May help pay for medical or funeral expenses for someone who is injured on your property.

Non-occupied dwelling coverage

In some cases, your insurance company may not cover a claim if the building has been unoccupied for more than 30 days. For example, if your rental home was broken into after sitting vacant for a month, you might have trouble getting the claim approved. With non-occupied dwelling coverage, you can get extended protection for that time.

Can a landlord require renters insurance?

According to Zillow, landlords can require renters insurance as a term of a new lease or lease renewal. We recommend that you check with local and state laws before adding a clause requiring renters insurance to your lease.

Decide How Much Insurance You Need

Add up the cost of everything you would want to replace if it were damaged or stolen. This could also serve as the basis for an inventory that will make filing a claim easier. For an inventory, also record model numbers, dates and places of purchase. Take photographs or make a video of these items and place a copy of the inventory in a safe place away form your home.

If you rent an apartment or house you need insurance to protect your belongings. While your landlord might have insurance, it only protects the building. Your belongings are not covered under those policies.

While renters insurance offers broad protection for tenants, it’s important for consumers to choose the policy that best suits their individual needs.

A renters policy can cover your personal belongings and help cover legal costs in the event you are sued for accidental bodily injury or property damage of others. But not all policies are the same. Here are five questions to ask your insurance representative to help you make the right choice.

When your tenants have their own renters insurance, there’s less risk of you being held responsible for potential lawsuits or legal fees for issues they might try to claim are your responsibility.

Like all types of insurance, the cost of landlord insurance depends on a number of different factors. The location of the property, the size of the building, the number of units and the age of the building are all factored into your rate. There are also some personal factors, like your history of claims and your credit score, that contribute to your rate.

Get Coverage Today!

Ready to start a quote we can help you to set your way to the best renter’s insurance policy for you. Call us at (914) 269-2334 or email us to info@thejohnsagency.com.