There are many reasons people rent their homes as opposed to purchasing them. Some want to avoid having the responsibility of yard work, others may not be at home as much as they would like because of travel or other work responsibilities, some may not be able to afford the total home ownership package, and there are just some looking for as minimal responsibilities as possible. As a landlord does take on many responsibilities in a dwelling such as maintenance repairs, keeping up the grounds, and are even responsible for fires and floods, the one thing many tenants are not knowledgeable of is that the landlord is not responsible for the contents inside the home that the tenant brings in, even if it’s something due to the landlords negligence. Here are a few things tenants should understand about liability insurance protection policies.
Landlord Liability vs. Tenant Liability
First off, a home should be covered under two policies: a landlord liability insurance policy and a tenant liability insurance policy. The landlord policy will cover rebuilding the property and protection against damages such as fires, flooding and other unexpected hazards. If a property has faults and someone injures themselves on it because of negligence then any lawsuits would be covered from this policy. Now if a fire happens and a tenant’s furniture gets damaged the unit will be restored but that tenant will not have their furniture covered unless they have their own tenant liability insurance.
How Tenant Liability Insurance Protects Tenants
Tenant liability insurance protects the valuables the tenant brings inside the home. It also protects the tenant’s assets in case something goes wrong inside their home. For example, if the tenant is hosting a party and some friends fall and hurt themselves inside the home, the tenant has protection with tenant liability insurance against any medical costs and other law suits their friends may file against them. However, if the friends fell outside their home due to an unstable handle railing, the friend could sue the landlord.
It’s important for tenants to thoroughly read through their insurance protection policy so they know if they would prefer to add on any additional waivers. They also need to take pictures of their valuables and keep receipts and store them in a fire safe box or at least keep an electronic record of it all. This way when something does happen they will have everything documented and can send over to their insurance agent’s office.