In Louisiana, we know what it’s like to experience heavy rains. When you’re a renter or a landlord, it is extremely important to consider investing in renter’s insurance – especially a flood policy – to keep you and your belongings protected.
But what is renters insurance, and why do tenants need it? Many renters believe that it is the landlord’s responsibility to take care of any emergency that occurs in their property, but that is not the case. As a landlord, protecting your rental property and yourself from natural disasters is extremely important! Let’s review the high points of renters insurance and what it does (and doesn’t) do.
What Exactly Is Renters Insurance?
Renters insurance covers damaged or stolen personal property. It offers protection from accidents that occur in your home. Some policies cover temporary living expenses if you have to temporarily relocate due to an emergency.
Depending on the type of renters insurance purchased, your items will be covered if they are damaged by smoke, hail, vandalism, wind, water damage, plumbing issues, etc. If you rely on your landlord’s insurance, you need to realize that your property is not covered. Your landlord’s insurance only covers their property – nothing that you own.
What Does Renters Insurance Cover?
Broad Form and Comprehensive Form are the different types of renters insurance. In simplest terms, the Broad Form is the most common form of renters insurance.
This covers personal belongings, like we discussed above. Typically, a Broad Form will cover events like vandalism, theft, water (due to property utilities), smoke, lightening, or explosion. Your policy may cover more than just this listed, but that would be listed in your policy before you purchase.
A Comprehensive Form provides coverage for a range of events unless specifically excluded. Because this form covers so much – it’s cost is typically higher.
Choosing the right form for you may depend on your location. Residents of Allen or Jefferson Davis parishes may consider a Comprehensive Form due to the fact that they are prone to storms and hurricanes.
Is Rental Insurance Worth It?
A better question to ask is – can you afford to lose all of your property? Typically, the answer is no. Renters insurance is not overly expensive and covers you and your property from many different emergencies. This means that you’ll have the means to replace any damaged items, quickly returning back to normal life.
Should You Require Renters Insurance?
Unless specifically written into your lease agreements as a requirement, renters insurance is not required from your tenant. Your property insurance will cover any damage to the property, but won’t cover damages to personal items of your tenants.
Flood Insurance – Should I Require It?
As a landlord, it’s within your rights to put this into your lease agreement, requiring tenants to have renters insurance. In areas of Louisiana that are prone to flooding, insurance that specifically covers flood damage is not a bad idea for landlords to require of their ground floor tenants.
Flood insurance covers electrical systems, furnaces, water heaters, central air conditioners, and other essential home systems. It will also cover appliances, carpeting and window treatments, along with permanently installed cabinets, bookcases, and paneling that may be damaged by the water.
In addition to these home items, your tenants personal belongings will also be covered. This includes furniture, electronics, clothing, and certain valuables.
Like typical renters insurance, flood insurance is not too expensive per year, and when you consider what it covers if it becomes necessary to file a claim, it will easily pay for itself.
Water Damage Clean Up by Rytech of SWLA
As a landlord in Louisiana, you may run into situations where rental properties will require clean up after experiencing water damage. The experts at Rytech are here to help. We’ve serviced the areas of Louisiana like Beauregard, Calcasieu, and surrounding areas for years and know exactly how to handle the specific situations that Louisiana weather brings.
Call us today to schedule a consultation. Our team is standing by 24/7 if you are experiencing an emergency flooding situation. Call Rytech today – we’ll repair and restore your rental property properly and as quickly as possible.