Just as homeowners buy insurance to protect their homes, tenants should invest in similar protection when living in a rental property. They have a responsibility to keep their belongings safe and insured. Renters insurance will help cover any damage if something unexpected happens.

A Guide to Rental Property Insurance

What Does Renters Insurance Cover?

Landlords typically have insurance coverage to protect the physical building. A tenant is not covered under the landlord’s policy, which is why rental insurance is necessary. The policy will cover the value of the renter’s belongings, like electronics, furniture, jewelry, and clothing.     

Renters insurance also protects the tenant from personal liability in the event an accident happens on their rental property. Examples include forgetting to put out a cigarette and starting a fire, or letting the bathtub overflow and causing water damage. If someone is injured inside the tenant’s rental, insurance can also cover legal fees and settlements.

Can You Require Renters to Buy Insurance? 

While laws vary by state, you should speak with a lawyer about adding a mandatory insurance clause to your lease. The insurance will offer the only protection for a tenant’s property. Renters insurance should be affordable for most tenants, and if they already have an existing policy for auto insurance, rental coverage may be added on at a discounted rate.

If you need help managing your tenants and rental property in Upcountry Maui, turn to Classic Maui Properties in Pukalani, HI. With more than 40 years of experience, their real estate experts will handle all the essential aspects of property management for you, including advertising openings, organizing background checks, drawing up rental agreements, and arranging maintenance. Call (808) 878-1001 today to set up a meeting with a member of their staff, and visit the website to learn more about their services.