I’m Not Sure I Need Renters Insurance, but My Landlord Says I Do. Why?
Many landlords actually require tenants to purchase renters insurance and include it as a term in the lease. Why? It’s in each party’s best interest if everyone, landlord and tenants alike, is covered. Still not sure what renters insurance is and what it covers? Check out “What is Renters Insurance?” for a helpful introduction.
A landlord’s insurance policy covers the building itself, but it starts to get tricky when a tenant or one of their guests causes property damage or if a visitor is inadvertently injured while on the property.
For example, a tenant could accidentally start a fire by leaving a candle unattended or allow a bathtub to overflow, damaging the apartment below. If the tenant has renters insurance, it will most likely cover the property damage to the other tenant. If not, the impacted tenant might try to come after the landlord to recoup the cost of the damage.
Tenants with renters insurance may also provide additional protection for the landlord against liability if a tenant’s guest is injured, such as slipping on a wet kitchen floor in the tenant’s apartment. Even if your friends don’t tend to be klutzes, you never know when an accident might happen, so it’s better to be protected. If you still have questions, “How Does Renters Insurance Work?” breaks it down further.