Renters insurance is designed primarily to protect residents, but it also provides important protection for landlords. When your residents aren’t insured, you’re more vulnerable to lawsuits and financial losses.
A basic renters insurance policy protects your residents in four important ways:
- Contents coverage protects their belongings if they’re stolen or damaged due to a covered incident.
- Loss of use coverage can pay for temporary accommodations if their home becomes uninhabitable due to a covered peril.
- Liability coverage helps renters when they’re held financially responsible for an issue like a kitchen fire or injury to another person.
- Medical payments coverage offers financial assistance if a renter needs to cover someone else’s medical bills due to an incident in their home.
The benefits of these kinds of coverage to the resident are clear. Resident policies can also help properties keep insurance premiums down and prevent potential lawsuits.