YOU ASK:

What is renters insurance?

WE ANSWER:

A lot of people renting apartments believe their landlord's or landlady's Homeowners policy covers their possessions and protects them from liability arising out of the tenants' exploitation of the property. This is far from the truth.

When you temporarily reside in a dwelling that is not your property, you are exposed to many risks. Not only is it your responsibility to pay for property damage that may happen to the venue while in your exploitation, but you can also be held liable for any bodily injuries sustained by a third party, which may occur as a result of your negligence.

What is more, under Homeowners insurance none of your valuables and possessions are protected against damage or theft if you don't own the place. A simple calculation shows that you can lose thousands of dollars in stolen or damaged belongings if an accident occurs.

How Can I Prevent This?

The preventive measure is called renters insurance. The truth is that few people renting venues are aware of the need to purchase this type of insurance. To avoid the consequences of this widespread misconception, a large number of homeowners today expect from their prospective tenants to have renters insurance prior to signing the rental contract.

Characteristics of Renters Insurance

  • Renters insurance provides financial protection in the event that the insured is held liable for causing damage to the rented property. It also provides coverage when the insured is held liable for negligence which has resulted in a third-party injury.
  • Renters insurance is inexpensive - costing between $100 and $200 per year.
  • It is important that the tenant's renters insurance policy has adequate liability limits: specialists usually recommend a minimum of $300,000.
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