Do you rent an apartment, condo, or home? What would you do if a fire destroyed everything you owned or a thief took all of your personal belongings? Many tenants believe that their landlord’s insurance coverage would pay to replace these items. Unfortunately, this common idea is wrong. Here is what you need to know.
Your Landlord is Not Responsible for Your Stuff
One of the biggest misconceptions among renters is that their landlord would pay to replace their belongings if there was an unexpected incident. The truth is that Arizona tenants are responsible for their own items. This means that if a claims situation were to happen—such as a fire, theft, or weather event—you would have to pay out of pocket to repurchase your damaged or stolen items.
How Renters Insurance Can Help
For most people, coming up with the cash to replace each and every item inside their home would be a tremendous burden. So, how do you protect yourself financially if your landlord is not liable for your belongings? This is where renters insurance can help.
Renters insurance is purchased in a set amount to help you pay for your belongings in the event of a covered claim. For example, a $50,000 insurance policy would pay out up to that figure to help you repurchase items. Different amounts are available depending on your needs, so it is important to speak with your agent directly to determine which level of coverage is right for your situation.
Some Landlords Require Tenants to Have Renters Insurance
It is also important to note that some landlords and property management companies now require tenants to have renters insurance at the time of lease signing. In fact, most will not even hand over keys to the apartment or house until the renter shows proof of coverage. Why? By making sure renters know upfront that they are responsible for their own goods, the expectation of who pays for damages is set up front and can keep unnecessary disputes from happening.
Of course, personal belongings are just a small portion of the protection you receive with renters insurance. Other facets include liability coverage and temporary housing in the event of a catastrophic loss. For more information or to receive a no-obligation quote, please contact our team at Lifetime Investments LLC today.