If you are a renter, it is almost always worthwhile to take out a renters' insurance policy, even if you are not required to do so by your landlord. For an affordable price, renters' insurance will protect you against catastrophic damage to your property and potential legal liability. Ultimately, renters ' guarantee insurance can be useful, but it is an expense that some landlords can avoid by carefully screening tenants. Still, those who need that peace of mind may want to go ahead with it despite the cost.
Renter's insurance may be necessary if the landlord requires it at the time of move-in. Landlords often mandate their own policy because they do not want to be liable if someone is injured in their tenant's home. However, the tenant also benefits from renter's insurance policies by having their items protected from an event that may not be covered by the landlord's insurance. There is no limitation on the type of property, but some plans are limited as to the range of rent that will be covered.
Renters' guarantee insurance can help landlords avoid getting into a difficult financial situation when tenants are unable to pay. When getting quotes from different companies, check what add-ons they offer and see what might be included. Many college students rent housing while studying, and since they may not have savings to cover the financial impact of a disaster, taking out renters' insurance can be a worthwhile investment. If you rent your home, it may not be covered by homeowners insurance, so look into homeowners insurance instead.
No one is legally required to purchase renters insurance in any state unless they have agreed to it in their lease. It is important to take the time to determine the value of your personal property to ensure that you do not underinsure yourself when selecting your policy. Rent guarantee insurance covers non-payment of rent if the tenant defaults on the rent payments you have agreed to in your lease. In either case, you can balance the cost of adding this type of insurance to the base monthly rent based on your area and your profit margin.
When your home does not meet that definition because it is rented on a regular basis, it is no longer covered. Now that you understand what it is and why it can be worthwhile, you will need to know how to get renters insurance for yourself. Most homeowners policies will cover an occasional short-term rental if, for example, you're going away for a few weeks, says Dave Millar, a partner at Riley Insurance Agency in Brunswick, Me. Determining whether you should get a homeowners insurance policy is something most first-time landlords will debate.