Why renters insurance required

Renters insurance can help cover the costs of things like a dog bite liability or property damage caused by an animal. The details of what the insurance covers will depend on things like:. The landlord will want to check your policy to see if it covers these costs first since some insurance policies are a bit more restrictive than others in covering pet-related claims. If a tenant or a guest becomes injured in your apartment, the landlord will not have to worry about being sued for damages.

Renters insurance often covers liability without the need to bring the landlord into legal proceedings. Furthermore, it enables the landlord to recoup the costs of any damages that could be your responsibility.

You can get our headlines via email as well, or follow us on Twitter. As a landlord, you take steps to protect your investment. You make sure you protect yourself with good insurance policies, and take steps to minimize your liability. Six out of ten Americans renters are without renters insurance —according to a survey conducted by Insurance Quotes.

In most states, landlords can require renters insurance as a condition of the lease, but there are some exceptions. In California, for example, landlords who have properties that are subsidized or those who rent to tenants who receive a housing subsidy may not require renters insurance. Additionally, rent-controlled areas like New York and San Francisco may also put a dollar amount on the amount of insurance that a tenant is required to get.

Tip: One way that renters could save on insurance is by bundling the policy with their car insurance. On an auto insurance policy, this savings could be sizable —making the cost of additional renters insurance almost negligible. That may make you wonder, can a landlord require renters insurance?

Yes, landlords can require tenants to have a renters insurance policy. Many landlords insist their renters have insurance to help avoid potential disputes if the tenant's belongings are damaged while on the property, or to reduce their liability in legal claims, according to the Insurance Information Institute III. Here are a few things to consider if your landlord requires you to have a renters insurance policy — and why you may want to consider renters insurance even if it's not required.

Landlord insurance policies typically provide coverage for structural damage to the building. However, landlord policies typically do not extend coverage to renters' personal property. If your television is stolen or your furniture is destroyed in a fire, your landlord's insurance likely won't cover the costs of replacing these items.

Landlord insurance will not typically cover damage you cause to the building. For example, you may be responsible for repairs if you accidentally start a kitchen fire.

Some landlord policies , however, will cover liability for another person's injuries on the property including medical protection to help pay for reasonable and necessary medical expenses if someone is injured on the property. While your landlord's insurance may help pay to repair the building after a covered loss, such as a hailstorm or fire, renters insurance typically offers protections not provided by a landlord policy, says the III.

Renters insurance typically offers the following protections:. Personal property coverage. This coverage may help pay to replace your personal belongings if they are damaged or ruined by a covered peril, such as fire or theft. So, if your rental unit is damaged by fire, renters personal property coverage may help to repair or replace damaged belongings, such as furniture and clothing.

Liability coverage. If you are found legally responsible for injuries to other people or damage to their property, renters liability coverage may help prevent you from paying out of pocket for certain related costs. For example, if you distractedly leave the bathtub running and the flowing water ruins the apartment below, this coverage may help cover the cost of repairs. Additional living expenses coverage.

If your rental home or apartment building are left temporarily uninhabitable after being damaged by fire or another covered peril, this coverage may help pay for unexpected additional costs, such as hotel bills, while you are unable to live in your rented home.

Keep in mind that these coverages will likely have limits , the maximum amount of money an insurer will pay for a covered loss, as defined in your policy.