If you think that you landlords insurance policy covers you, think again. As a tenant, you need your own renters insurance policy to protect your personal items and to cover you in cases where people sue you for liability. Your landlord’s policy doesn’t protect you, but you may benefit from the repairs made to the apartment, appliances or furniture. However, in a lawsuit between you and the landlord, you won’t benefit from his insurance policy at all.
Being a landlord is a risky business, and your landlord’s insurance policy probably includes legal defense. The insurance company will pay for legal costs and provide him with legal representation in a lawsuit that you might file against him. A basic landlord’s insurance policy doesn’t include it, but he can purchase a rider or a comprehensive policy. In a situation where one of your guests wants to sue your landlord in addition to you for damages suffered while in your apartment, the landlord’s insurance will pay to legally represent him. Your landlord’s insurance policy will not provide you with legal defense, even if the landlord likes you as a tenant and has coverage. You need your own renters insurance for legal defense in a liability lawsuit.
Your landlord’s primary concern is maintaining or restoring the apartment in the case of damage or total destruction. Accidents happen and weather disasters can strike any apartment dwelling. Very few landlords are able to pay for rebuilding apartments that are destroyed out of pocket, so they rely on their insurance to pay those costs. However, your landlord’s insurance will not cover your things that are destroyed. His insurance only extends to the apartment structure and the appliances that belong to him. Your own renters insurance policy would cover the things you own, and it’s good financial planning to have one.
The other aspect of your landlord’s insurance that you shouldn’t rely on for your protection is coverage that extends to other structures on the premises, such as a garage. If you rent a house or other apartment with a garage, then it’s important to keep this mind. The items you store in the garage are not covered, and neither is your car. If someone steals your belongings, and you don’t have renters insurance, you will have to pay yourself to replace those items. You can’t look to your landlord’s insurance for relief. Renters insurance will cover theft, and not just loss due to fire or natural disasters.
You might be wondering about the furniture that came with your apartment, if any. That is most likely covered by your landlord’s insurance, even though you’re using it. Your renters insurance won’t cover it because it doesn’t belong to you, and therefore your landlord needs a separate policy to get the actual cash value of the furniture that was destroyed, or its replacement value.
Don’t make the mistake of failing to buy renters insurance, thinking that your landlord’s insurance will protect you. Compare renters insurance quotes, and buy a policy that protects you.