If you’re renting a house, condo, or apartment, you may not own real estate, but you do have possessions that you value and have worked hard to attain. You should protect these belongings by purchasing a renters insurance policy.
What you don’t know can hurt you. Many renters don’t know that their landlord’s homeowners policy covers only damage to the structure of the dwelling. The landlord’s insurance policy does not cover any of the tenant’s contents. If you are living in a rental that becomes flooded or damaged by fire, without renters insurance, you will be out of luck. Most renters insurance policies tend to be relatively inexpensive. If you’re a tenant, you need renters insurance to protect your valuables.
If you own a home but rent it out, your homeowners insurance policy becomes void once you vacate the property or rent it out to another party. If you own a rental property, you should seriously consider adding another coverage called Dwelling Fire Coverage. This coverage replaces your homeowners policy. Adding Dwelling Fire Coverage ensures that if your property is damaged by fire when it is being rented out, you will be compensated for lost rental income (usually for the duration of a year.)
Despite its name, Dwelling Fire Coverage covers more than just fire. It also protects homeowners in the event that someone is injured on your property when you are renting it out. Because you can’t control what occurs on your property when someone else is living there, it only makes sense to add this extra level of protection.