Do I still need landlord insurance if I require my tenants to carry renters insurance?

If you are a landlord in Selden, NY, you probably have a clause in the lease that requires your tenants to carry renters insurance, hopefully through XL Brokerage Inc. This is a common policy because it places the responsibility of insuring the property on the owner. However, you should also have landlord insurance. It is important to understand the difference between the different kinds of policies.

Landlord Insurance

This kind of policy protects the physical structure, including the building and any related fixtures. Other contents may be covered, such as major appliances, but the policy is mostly about the building itself. If the house burns down or gets hit by a tree, the damage should be covered by the landlord’s insurance policy.

This kind of policy also includes some liability coverage. For instance, if someone gets hurt in a common area like a stairwell, he or she could sue for damages, including medical bills. Instead of being forced to pay out of pocket, you would use your landlord insurance to defend yourself and pay the claim.

Renters Insurance

This kind of insurance mainly covers the renter’s property, such as clothing, furniture, small appliances, and other items. If the renter’s property is stolen or damaged, he or she can make a claim against the renter’s insurance.

The renter can also make a claim against the renter’s insurance if there is some sort of event that makes the place unliveable, such as a fire. The policy will cover the expense of staying somewhere else while repairs are made or a new place is found.

If you own or rent in Selden, NY, you probably need either landlord or renters insurance. If you have any questions or are interested in discussing policy, please call XL Brokerage Inc. so we can help.