Can Landlords Buy Renters Insurance for Their Tenants?
Posted October 06, 2022 in Landlord Insurance, Renters Insurance
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If you are a landlord, you may wonder if you can purchase renters insurance for your tenants.
The short answer is no. You may not legally buy renters insurance coverage for your tenants because the policy has to be in their name. However, if you want to reimburse them for the cost or pay a portion, you can.
You can even use reimbursement of renters insurance as a perk to attract tenants. However, regardless of what you choose to do about renters insurance, you’ll want to invest in landlord insurance.
Call Gallant Risk & Insurance Services today at (951) 368-0700 and sleep peacefully tonight. For more information about landlord insurance, ask one of our homeowners insurance experts.
Do I Need Landlord Insurance?
If you rent out a portion of the home you live in, you may very well need landlord insurance, and if you rent out a separate structure, you definitely do.
Within Or Attached to Primary Residence
If you rent out rooms within your primary residence, talk to your homeowners insurance agent to get a clear understanding of what, if anything, in the area(s) rented out are covered by your policy.
You’ll also want to know if renting out rooms in your home will void your insurance policy in any way.
If your homeowners insurance covers any part of your house that is inhabited by someone who pays you to live there, ask what that is to ensure you have the coverage you need.
Until you have a better idea of where you stand with your insurance coverage, it’s best to assume that any rented area dominated by the tenant is not covered, and you may risk voiding your policy in the meantime.
You’ll almost always need landlord insurance if you rent out an attached dwelling with its own kitchen.
Renting Out Separate Structures
Get landlord insurance as soon as you put your vacant house or unattached unit on the rental market. This way, you’re covered for damages while showing your rental.
A vacant, unattached unit on the property of your primary residence may be covered by your homeowners insurance up to a point, but a vacant house at a separate location should have vacant house insurance.
Differences Between Landlord Insurance and Renters Insurance
A landlord policy will cover the homeowner’s rental property (dwelling) against lost rental income and liability risks, while renters insurance covers tenants who are injured due to a defect of the dwelling, their personal property, and any damage they cause to the rental.
Renters insurance will also cover living expenses for tenants who can’t reside at the rented property because of emergency repairs.
When tenants and landlords have their own insurance policies, they are both covered and can avoid or significantly save on many unexpected, out-of-pocket costs.
Learn More About Homeowners, Landlord, and Rental Insurance
Gallant Risk & Insurance Services is located in Southern California and offers the highest level of personal attention to ensure you have the insurance coverage you need.
We are happy to provide a wide range of personal and business coverage for individuals, families, and corporations, both big and small.