What Landlords Don’t Cover: Why Your Lease Might Require Renters Insurance

Many tenants in Illinois obtain renters insurance because landlord insurance often only covers the building, not personal property or liability. Renters insurance may safeguard tenants from financial losses due to covered events like theft, fire or liability claims.

What Does Landlord Insurance Cover?

Landlord insurance usually covers the structure of the building, such as the walls, roof and common areas. If there’s a fire, storm damage or another covered event, your landlord’s policy helps repair the property. However, this coverage does not extend to your personal belongings or your personal liability as a tenant.

Why Do Leases Require Renters Insurance?

Renters insurance as a lease requirement is a common practice to protect both landlords’ and tenants’ financial interests. Doing so can help limit a landlord’s risk levels. For instance, if a tenant accidentally causes damage (e.g., starts a fire or floods the unit), renters insurance may cover the cost.

Additionally, renters insurance can help landlords avoid disputes. If a tenant’s belongings are damaged by covered events, renters insurance may pay those losses, so tenants are less likely to blame or sue the landlord.

What Does Renters Insurance Cover?

Renters insurance may provide the following benefits:

• Coverage for your personal possessions if they’re stolen or damaged by covered events
• Liability protection if a third party is physically harmed in your unit or if you accidentally damage others’ property
• Payment for hotel bills, groceries and other temporary living expenses if your rental becomes unlivable due to a covered event

Contact Our Agency

Samco Agency helps Illinois tenants secure renters insurance. Our agents can discuss your options and recommend suitable policies. Contact us today to get started.

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.