Renter’s Insurance And Why It’s Beneficial To Both Parties
In the past couple decades we have seen a significant switch on how renting policies have changed. Back in the day, little was required of renters before signing a contract with the landlord. In fact, all that ever really was needed was your first and last months rent, before the deal was sealed with a handshake.
However, nowadays there is quite a bit more to goes into the process of being able to rent. For instance, it is now required that you have a safety deposit, that you provide your personal information so a background check can be run as well as a credit check, that you need to be able to prove you make a certain amount in order to be approved, and of course you have to have renters insurance. While all of these elements may seem to overcomplicate what should be a simple process, they actually may be more mutual beneficial than you realize. Especially, when it comes to renters insurance. In this article will explain the importance of renters insurance and how it is the real link to not only benefiting the landlord, but also the tenant.
Two decades ago renters insurance wasn't a very well known concept. In fact, most of the liability insurance fell on the shoulders of a landlord. However, because of spikes as nearly high as 50% in property and liability insurance rates in 2004, landlords began to make renters insurance mandatory for their tenants. The reason they started to do this was to help relieve the burden of this expense, and shift some of the responsibility to the tenant.
Now, this may not seem fair to you as a tenant to shoulder an expense of a piece of property that doesn’t even belong to you. However, there are more benefits to this arrangement than meets the eye. For example, did you realize that besides just covering the cost of liability for the property, renters insurance always covers the contents of your belongings, should they be damaged, destroyed, or stolen? If you as a tenant were just to be covered by your landlords insurance, this benefit would not be offered. And since an average 2 bedroom apartments has the value of about $30,000 worth of possessions, renters insurance may not start to seem like such a bad idea.
Not only does renters insurance help cover your possessions, by it also is extremely affordable. On average a renter will only spend about $15 a month, or $188 a year on insurance. And often times, your auto insurance company will allow you to bundle in your renters policy, making it even more affordable. So, instead of seeing renters insurance as a negative thing, you can try to see it for what it is. And that is, it literally is insurance in covering your possessions, as well as covering yourself if anything were to be damaged on the property. This even includes injury for you personally. When you start to look at it like that, renters insurance starts to look pretty good.
Yes, while renting has become more tedious and complicated in recent years, not all of the policies in place are necessarily bad things. Especially, when it comes to renters insurance. This added element to the renting process is mutually beneficial to both the landlord and tenant. It will not only protect both sides. But it also will help make the dynamic of the tenant landlord relationship stronger, because it is the real link to eliminating an extra burden for both parties.