Tip of the Month - August 2007

Renter's Insurance

Source: Landlording-Ninth Edition-By Leigh Robinson



WHY DO SO FEW TENANTS PURCHASE RENTER’S INSURANCE?

They erroneously believe that their Landlord carries insurance which will cover them and their belongings.

They have never given it even a first thought because nobody has ever made them aware of such a thing.

They think they cannot spare the money.

They think their assets are too insignificant to be concerned about.

They would rather gamble that the premiums which they would pay over time would exceed whatever benefits they would receive.

Tenants who have insurance are less likely to sue their Landlords after a calamity than Tenants who do not have insurance.  Tenants who have insurance do not have to turn to the Landlord for compensation: they can turn to their own insurance for compensation.

What does a Renter’s Insurance policy cover?

It may cover fire damage only or fire damage plus lots more.  It may cover Tenant’s personal goods which are damaged or stolen on the premises.  It may cover losses to their goods when they are off the premises, such as golf clubs or a camera stolen out of their locked car.  It may cover them personally in case someone mugs them on or off the premises, forges their checks or steals their credit cards.  It may cover personal liability in case they are negligent as Tenants and cause damage to the dwelling.  It may cover personal liability for non-auto bodily injury claims brought by others.



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This web page was updated on 08/04/2007.