Property owners know that whether they own an apartment in rural Chester, NY or a condo in New York City, insurance is critical. Fires, robberies, floods, and other natural disasters arrive unexpectedly, and for those that are uninsured, it is often impossible to handle the loss. Both landlords and renters need insurance, but sometimes both are confused about which policy covers what perils.
Let’s try to sort that out!
A landlord insurance policy will cover the property itself. If a home is totally destroyed by fire, the landlord insurance policy will pay to have it rebuilt. While some of the building contents may be covered, the landlord insurance policy mainly covers the structure.
Personal renters insurance does the opposite, as it will pay for the renter’s possessions, but not for the structure/building. It can help you pay for a place to stay while your residence is being rebuilt, and it will cover your personal property.
Both renters and landlord insurance policies cover liability, but it’s not exactly the same for both. If, for example, you find lead paint in your residence and you become ill, you can sue the landlord and his or her landlord liability policy may pay. Your renters insurance may not help you.
Conversely, if someone is injured at your property because you spilled water on the floor and left it there, your renters insurance policy may cover you. It’s unlikely that the injured party could make a valid claim against the landlord’s policy unless the puddle was a result of the landlord’s negligence. An example of that would be a leaking pipe that the landlord refused to fix.
Thus, both landlord and renters liability policies can come into play if there is an accident, and, yes, there can be overlapping coverage, but neither the landlord, nor the renter should solely rely on the other’s policy protection.
Deductibles are an amount that you have to pay out of pocket before your insurance kicks in. While homeowners insurance policies once came with a range of deductibles from $100 to $1000 or more, it is now customary for deductibles to be expressed in terms of percentages. A one percent deductible may seem small, but if your home is valued at and insured up to $400,000, that one percent would be $4000, so until a loss would total more than $4000, you would not receive any insurance benefits.
Both landlord and renters insurance policies also have deductible limits, so it’s very important to talk to your insurance agent about your coverage limits, especially if you’re a first-time buyer looking for more information.
Please remember that with both renters and landlord insurance, some natural disasters are not covered. Some policies will not pay for flood damage, and if you live in a flood plain, it may be necessary to obtain a separate flood policy.
Contact our insurance specialists at 845-986-1177 to learn more. We are your business, home, auto, and life insurance solutions provider, partner, and adviser, serving Warwick, Greenwood Lake, Florida, Goshen, Pine Island, Middletown, Chester, Monroe, Newburgh, Orange County, and the Hudson Valley and Tri-State Area.
This post was provided by ABODO, an online real estate and apartments marketplace with available apartments across the U.S. Their research and writing has been featured nationally in Curbed, Forbes, Realtor.com, HousingWire, and more.