Most properties require renters insurance for all their tenants, but why? Is it just a ploy by insurance companies to get your money? There’s a lot to worry about when renting a home or renting out your property, especially when it comes to insurance. Here are three things you may not know about renters insurance and why it’s so important to get.
1. Do I really need renters insurance?
If you’re moving into a rental home in San Antonio, the first thing you need to consider is how valuable your personal property is. Many property management companies will require a certain base level of renters insurance to cover all the bases if a disaster were to occur.
If your property management does not require you to purchase renters insurance, then you should consider the value of all the items in your home. Think about what you can afford to replace if worse came to worst and everything was destroyed or ruined in a natural disaster. If that thought makes you start to panic, then purchasing renters insurance may help you gain some peace of mind.
2. Does renters insurance cover everyone in the house?
Are you living on your own? Renters insurance will cover absolutely all of your personal belongings. Some insurance companies will allow you to replace up to a certain dollar amount of damages while others will have you declare your property in the event of an incident. If you’re living with a spouse, most insurance companies will gladly add them to your policy, allowing you to include your spouse’s belongings in the policy.
However, if you are unmarried and living with another person, the rules on covering others in the home get more complicated. Generally the rule of thumb is that if you and the other(s) in your home split all expenses (not just rent and utilities, but personal belongings as well), then you can both be on the same policy.
3. Can I get renters insurance if I own the home?
Generally renters insurance is used to protect personal property in a multi-family home owned by a landlord or leasing company. The landlord will buy property insurance to protect the building, and tenants will purchase renters insurance to protect their own belongings. This allows tenants the luxury of crafting their own policy, covering as much or as little as they want.
If you own the home and rent it out to tenants, you should have them purchase renters insurance to avoid any snafus in the case of a dramatic incident. Of course, renting through a qualified property management company can also help simplify the process of renting out your property.
Still have questions?
Whether you’re renting your property out or renting your current home, it’s crucial to understand the benefits of having rental insurance. If you’re still uncertain, contact San Antonio Luxury Realty today for more property management information.