What Is Renters Insurance?
Renters insurance is designed to help protect renters living in a house or an apartment. It provides coverage for personal property, liability, and additional living expenses. Renters insurance is similar to homeowners’ insurance, but it does not include coverage for the dwelling structure, with the exception of small alterations that a tenant might make.
LeaseRunner is not an insurance carrier or insurance producer and does not sell insurance. LeaseRunner provides a platform for Assurant to market and sell renters insurance to LeaseRunner’s customers. Assurant, a Fortune 500 company, is LeaseRunner’s preferred provider for renters insurance. Any insurance-related questions or matters should be directed to Assurant.
The specific terms of a renters insurance policy may vary from state to state. Renters insurance policies are typically quoted based upon liability/personal property limit, such as $100,000/$20,000, and a deductible, such as $250 or $500.
Renters Insurance can save the day and protect you against cost associated with:
Fire caused by you or others
Additional living expenses if your home becomes uninhabitable due to the covered perils
Legal costs and medical expenses for injured guests or neighbors
Damage your kids or pets caused to others
Why Tenants Should Get Renters Insurance
Renters insurance has three main benefits for a tenant:
personal property coverage
additional living expenses
Personal property coverage includes the cost to repair or replace your belongings, such as clothing, furniture and electronics, up to the limits in your policy. LeaseRunner recommends a minimum of $20,000 for personal property coverage. It is important to determine if your insurance covers replacement value or the actual cash value of the personal property.
Liability coverage includes the cost of repair if you accidentally damage someone else’s property or the cost of a guest’s medical bills if you’re found responsible for their injuries. LeaseRunner recommends a minimum of $100,000 for liability coverage.
Additional living expenses includes additional costs you incur, like hotel bills or food expenditures, if the residence you rent is damaged and left uninhabitable.
Why Landlords Should Require Renters Insurance
The liability coverage can protect the landlord when the tenant causes damage to the property or another person. Tenants can cause for some hefty damages. Fires, flooding, and pet damage/attacks can very expense.
A tenant might not have the financial resources on their own to pay for damage they accidentally or intentionally cause. Renters insurance covers the cost. Without it, the landlord would have to eat the cost or file an insurance claim on their own property policy. Such a claim will likely increase the landlord’s insurance rates.
Essentially, renters insurance gives landlords primary insurance in front of their own policy that they do not have to pay for. Landlords may legally require renters insurance of their tenants. So if you are a landlord, there is really no excuse not to require renters insurance of your tenants.
LeaseRunner Makes Renters Insurance Easy
Purchasing renters insurance through LeaseRunner is an easy process. As part of the move-in process, the landlord may select to make renters insurance a requirement of the lease. LeaseRunner emails the tenant a link to complete the application and purchase of the insurance policy.
The tenant may customize the insurance to meet specific needs. The landlord receives an email that the insurance has been purchased, and the tenant is then allowed to pay rent and deposits through the Tenant’s Tenant Payment Center account.
If the landlord does not require renters insurance, the tenant may still purchase renters insurance voluntarily at any time through the tenant’s Tenant Payment Center account.