Renters' insurance
Renters' insurance, often called tenants' insurance, is an
General requirements
Many large and medium-sized rental properties include a requirement in their lease that tenants hold renters' insurance.[2] If the tenant damages the premises,[3] the landlord and other tenants can recover against the perpetrator's insurance. It is important to know what type of damage your insurance covers. Essentially, there are three types of coverage available: loss of use, personal property, and personal liability.[4]
Tracking renters' insurance
Multiple companies track renters' insurance in apartment complexes by requiring the tenant to purchase insurance, while maintaining a database of expiration dates, cancellations, and additional information for the property owner/manager to use to ensure coverage for all units. Among the companies that track renters insurance, there is some variation in methods. Some companies primarily track their own policies, while others will track a combination of their own issued policies and third-party policies submitted by tenants. By using additional interest tracking, management companies and property owners gain a more complete picture of the insurance profile of their properties by receiving notifications in the event there is a change, cancellation, or lapse to an insurance policy held by a tenant. A limited number of communities require that tenants list them on the policy as additional insured. This actually makes it more difficult for a property owner or manager to recover from a tenant's liability policy because the additional insured is a party to the policy rather than a third party, which would be eligible for coverage.
See also
References
- ^ http://www.nasdaq.com/article/details-buried-in-the-fine-print-of-renters-insurance-policies-cm664704 [bare URL]
- ^ "Requiring Renters Insurance?". American Rental Property Owners And Landlords Association. 2011-02-11. Archived from the original on 2013-06-19. Retrieved 2012-08-06.
- ^ Leshnower, Ron. "Renters Insurance FAQ". about.com. Retrieved 2012-08-07.
- ^ "The Truth About Renters Insurance". Rentalchoice.com. Archived from the original on 2014-04-18. Retrieved 2013-05-09.