Is it necessary to buy tenant's insurance when you have all sorts of other insurances?

Question

We rented a house in New Jersey last year and the insurance agent casully mentioned tenant's insurance while selling us Flood insurance. We did not do that. Now they are insisting we buy this insurance which costs an additional thousand dollars. Must we buy tenant's insurance?

Answer 1

I can't figure out if you're the tenant, or the landlord.

In both cases you should get extra coverage.  If you're the landlord it will give you 'rent loss coverage' which is key if there is damage to the house where it becomes unlivable (flood, fire, etc).  If you don't have it and disaster strikes, then you lose the income until you can fix it.

If you're renting it's absolutely the best idea to get insurance.  You have no rights to use your landlord's insurance on the home if things are stolen or broken.  It's not that expensive either, as long as you're not insuring furs and jewelry and such.

Answer 2

If the house burns down, the owners insurance rebuilds the house and the insides.  There was an article in yesterday's paper where a storm knocked down a carport cover and ruined 2 of the tenant's cars.  The insurance did not have to pay the cars.  The tenants needed to get renter's insurance if they wanted to be covered.  The tenants were mad. They didn't think it was their fault and now they are without a vehicle. The court said they needed to get their own insurance.  No one can force you to get it, tho. /

Answer 3

If you have rental property you do, otherwise you will not be covered.   Tenants rarely maintain property and cause a lot of damage via neglect that the property owner often knows nothing about.

Answer 4

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Answer 5

It sure is a smart financial safety net.  Your landlord has insurance to protect him from liability and on his/her property and the structure.  I think it is smart to protect your own belongings rather than being self insured.  Take a look around the house.  How old are the appliances, the hot water heater, the pipes, the fire place, etc.  How likely is it that a leak in the pipes, hot water heater, dishwasher or washing machine will ocurr and damage your belongings?  How much can you afford to replace on your own from savings?  I've owned rental property where a tenant was responsible for a fire, can you personally cover damages anyone in your family causes?  What about liability?  If someone comes to your home and hurts themselves, can you afford their medical?  You have to look at what you can actually afford, but having insurance insures that you will only pay the premiums and the deductible when the unforseen happens.

Answer 6

Why do you have flood insurance? What is it protecting? The renter should not legally required to have any insurance at all, unless the lease calls for it specifically.

Renters insurance covers your personal property, not the house. It covers theft, damage, etc., as the landlord doesn't not have to reimburse you for any of yur personal property. A thousand dollars sounds high. Shop around.  

Answer 7

The LL has a right to request tenant to carry a renter's insurance. Even if LL did not require this, it's still highly recommended cos' the LL owner insurance does not cover tenant's belongings at all. You need to have something to protect your own personal stuffs esp. if you live in a big complex where you can't guarantee other tenants' behavior.