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Why Do Landlords Require Renters Insurance - Atlanta, GA?

You’ve decided to rent. Not only will you probably pay less than a home mortgage, but you also have more flexibility if your life takes you in a different direction and you want to move quickly. However, just like homeowners who want to ensure their home and belongings are financially protected, you may wish to purchase a renters insurance policy to protect your belongings if something unfortunate happens.  

Protection for Renters
Many landlords require their tenants to have renters insurance as a condition of signing a lease. A landlord’s commercial insurance policy doesn’t typically cover their renters or their belongings, which is why renters insurance is essential coverage for tenants to have.  

Renters insurance typically provides liability and property damage coverage. The liability portion helps protect you against claims of third-party bodily injury or property damage that you or another person listed as an insured on your policy causes. It might also help pay the medical bills for someone injured in your rental.  

Renters insurance offers two personal property coverage options: replacement cost value or actual cash value. If you insure at replacement cost value, you can replace your belongings at today’s prices. You can get the replacement cash value minus depreciation if you choose the actual cash value.  

Renters coverage also provides a couple of other significant advantages.

• No additional living expenses. If you need to live elsewhere temporarily while your unit is being repaired or renovated because of a natural disaster or fire, your renters insurance may cover these temporary living expenses. Your landlord also benefits by not having to pay these additional living costs.
• Eliminates any reimbursements. If your personal belongings are damaged due to a covered event, your renters insurance should cover them.

Without a policy, you’re taking on the costs that may occur inside your unit, to your belongings or potential relocation costs if there are damages—all of which can be extremely costly. Renters insurance is relatively inexpensive and can help protect you, your belongings and financial livelihood.

Protection for Landlords

Landlords typically purchase commercial property insurance for their rental properties. This coverage is beneficial if their property has covered damage that needs repairs or replacements. In addition, a landlord’s insurance can help provide a landlord with rental reimbursement money if their property becomes unlivable because of severe damage, such as mold, termites or other significant issue with their property. Landlords also gain liability protection with their insurance, which is helpful if a property issue injures someone on the premises.

Affordable Protection

Since 1993, Peachstate Insurance has provided insurance to residents across Georgia. We can also help you with affordable coverage. Call our team at 877-977-2478 to get your renters insurance policy.



This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.

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