Renters insurance covers your possessions if they’re damaged, lost or stolen. Although it’s a wise investment all renters should consider, it is optional. However, your landlord may require you to purchase renters insurance. Is this requirement legal?
First, understand that renters insurance might not be your landlord’s idea. His or her homeowners insurance company may require all tenants to carry renters insurance. This way, your landlord’s insurance company isn’t responsible to replace all the tenants’ belongings.
Second, your landlord’s insurance policy only covers the building and ground. It does not cover tenant belongings. If there’s a fire, you lose your belongings and you don’t have an insurance policy, you won’t receive money to replace your possessions.
Third, landlords may require tenants to do anything as long as it’s legal and not discriminatory. You may choose to comply with the requirements and sign the lease or move to another rental unit.
If the cost is one reason why you may not want to buy a policy, consider the costs of not having coverage. Can you afford to replace your electronics, wardrobe, jewelry and collectibles? What happens if someone trips while visiting you, falls down the stairs and breaks his or her arm? Can you afford the medical bills? Renters insurance covers these expenses and protects you financially. It also gives you peace of mind because you know that you’re covered.
Plus, renters insurance is cheaper than you think. A policy can provide thousands of dollars in coverage for less than $20 a month. Customizing your coverage can provide even bigger savings when you increase your deducible, choose actual value rather than replacement value and bundle your renters and auto insurance policies.
When your landlord requires you to purchase renters insurance, understand that it is legal. It’s also beneficial for you. You never know when another tenant will buzz in a burglar or forget to turn the stove burner off. So discuss your renters insurance options with your agent today as you purchase required coverage that also gives you peace of mind.
