Some homeowners have space in their house that they rent out for some extra income. They find that this is a nice addition to their income that will offset some of the expenses of owning a house. As with all business dealings, it is important to have a contract, and one of the items that should be included in the requirement is that the tenants have renters insurance.
Why is that? Even though you are living in the same house, the owner’s home insurance does not cover the tenants’ belongings.
Renters insurance can cover personal property, liability, and loss of use. There are many events that could occur that would make insurance invaluable. Theft, vandalism, natural disasters, broken pipes, or fire to mention a few.
Renters insurance is usually fairly inexpensive, but it always makes sense to shop around, since there can be great variations in price, as well as, in what is covered, what the maximum payout is, what the deductible is, and if so-called acts of God (natural disasters for example) are covered.