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why you need rental insurance

Why You Need Rental Insurance

It’s no secret that insurance is necessary for all of us. We insure our vehicles, our homes and maintain medical insurance to protect us in the event of an emergency. However, many renters are still unclear as to why they need rental insurance when moving into a rental home. Sifton Properties requires that all residents carry and maintain rental insurance.

Read below to learn why you need rental insurance:

1. The Landlord’s policy does not cover your personal belongings.

Landlords maintain insurance on their properties but their insurance is to cover the building structure, the mechanicals and common areas. For example, if a fire occurs in a building, the Landlord’s insurance covers the cost to clean the smoke damage, paint the corridors and replace damaged structural items such as walls, kitchens and bathrooms. However, this insurance does not cover your personal belongings which may be damaged by smoke or fire. Renters insurance would provide you with replacement cost for any of your personal items which may be damaged.

2. Accidents happen and you may be liable.

As much as we try to avoid accidents in life, they happen. Tenants do not typically intended to create accidents or damage, but they happen in rented homes and they can impact your home, your rental insurance to protect yourself in case of an accident. For example, if you accidentally start a kitchen fire or overflow your bath tub, your insurance provider would assist with costs associated with clean-up and replacement. Without this coverage, your Landlord will request the funds to cover any related damages. Protect yourself and avoid any unforeseen costs.

3. Your possessions are more valuable than you realize.

Though you may not think your belongings are worth a significant value, if you took an inventory you would be surprised at the replacement cost. During an accident or emergency, the last thing you want to worry about is having to replace essential everyday items such as clothing and small appliances because you don’t have insurance coverage.

4. The Landlord’s insurance does not cover your costs to vacate your home in an emergency.

If you are unable to live in your home due to an incident of fire, flood, theft or vandalism for example, your landlord’s insurance provider does not offer you relocation costs. It can take several weeks or more for a home to be restored after an emergency and to settle an insurance claim. Make sure that your renters insurance covers relocation costs such as transportation, food and lodging.

Rental insurance is inexpensive and provides you with peace of mind and financial support in the event of an emergency.