Insurance for many years has benefited may people, ranging from motor vehicle, life, medical and home insurance coverage. This has been realized in cases of emergencies or accidents. Despite the benefits of insurance, most tenants or renters still have failed to purchase tenants insurance.
Tenants insurance refers to an insurance policy that provides most benefit to renters and it is dependent on various variables. It is considered cheap as compared to other types of home insurance policies. For more on tenant insurance, see Square One Insurance.
They are far less expensive than landlord insurance because they do not cover the actual building. Buildings tends to be the bulk of home insurance costs. There are some misconceptions about tenants insurance and so it is advisable for one to incorporate policies as part of protection. On the other hand, landlord insurance is a type of insurance which is specifically meant to protect your rental properties and tenants.
Landlord insurance normally constitutes similar protection as those of usual house insurance like the buildings and the contents within it, but varies according to different circumstances. There is only a slight difference between usual house insurance and landlord insurance. The difference is that a landlord insurance will include extra covers like non-payment of rent, loss of earnings or rehousing costs and liability of accidents. Landlords can insure multiple properties in a way that can be of more economical benefit in terms of costs, especially when he or she has a portfolio.
Landlord insurance is more comprehensive. Despite the fact that landlord insurance can cover most of the basic issues which arises through ownership, it does not always include liability coverage for tenants.
Tenants must know about the landlord’s insurance policy, whether the policy also covers him or her. As far as landlord insurance is concerned, it only protects the physical structure and landlord’s own liability. For this reason, a tenant should also insure their own belongings from potential risks.
Tenants also need to insure their belongings because accidents are unpredicted misfortunes which can result to impoverishment. They can also cause danger to their neighbors especially when they engage in activities that can damage neighbor’s property. In this case, they are advised to have a third party liability insurance to protect them from such events. In addition, some tenants might upgrade their rental houses to suite their need e.g. installing a closet. This can be damaged by fire or any other hazard and so having a tenant insurance will cater for such upgrades.
Landlord insurance is also not well scoped, you find out that certain risks are not always covered by landlord insurance. For example, damages from floods are not covered within this type of insurance, therefore, a landlord will be required to purchase a. separate flood insurance usually obtained from the National Flood Insurance Program.Read More