Renters Insurance : tenant to buy a renter’s insurance – Landlords do not have renter’s insurance, renters do, and yes, your landlord can require you to carry insurance. This policy is there to protect you and your belongings, and landlords only care whether you have it because it will save trouble when something happens and you get upset because they and their insurance isn’t going to cover you.
Renter’s insurance is basically like a modified homeowners policy that doesn’t cover the physical structure you live in. What is typically covered is whatever property you keep in your home, as well alternative accommodations should your home become uninhabitable. A lot of people think that the landlord or their insurer will step up and pay if they are robbed, flooded, or something else happens, but unless the landlord is specifically liable through recklessness or neglect, they are not responsible for anything that happens to your belongings. As far as paying for a hotel, that won’t happen either, unless your landlord is directly at fault. If your apartment floods or burns, if a pipe bursts, you’ll be prorated for the rent during the time you had to stay away from home, but that’s all you get.
Renters insurance isn’t expensive, and it’s strictly for your benefit. It won’t ever pay your landlord for the things your landlord needs coverage for; she still needs to have her own policies like a homeowners and extra coverage for landlords. The only reason why so many landlords require their tenants to carry insurance is that it saves a lot of conflict and arguing in the event that something bad does happen, because that’s when the tenant will get upset that the landlord isn’t paying them. With a renter’s policy, the tenant has no reason to get pissed at the landlord, as they will have their own protection.
What upsets a lot of tenants is that their landlords expect to be listed as “additional interested” on the policy, but that in no way gets them any coverage. All that means is that your landlord is listed as someone who is automatically notified if your policy is changed in any way, or if you let it lapse. When you think about it, this makes perfect sense, as it is the only way your landlord will know if you stop paying for your insurance.