Renter’s Insurance

Although renting a property does not subject a tenant to the same liability as that of a property owner, tenants can still benefit from obtaining separate renter’s insurance policies. High Value Realty requires all tenants to have a renters policy. 

What Renter’s Insurance Covers

Renters’ insurance policies are similar to homeowners’ insurance policies but have no coverage for buildings or structures. Renter’s insurance typically covers the cost of replacing personal items that are stolen, damaged, or destroyed. Some renters’ policies cover legal liability in the event that anyone suffers an injury while on the insured property. Certain actions of the policyholder which occur away from the insured property may also be covered.


Insurance Company Obligations and Rights

When a renter purchases liability insurance, part of the insurance company’s obligation is to provide a defense in the event of a lawsuit. Even though the insurance company selects the lawyer and must approve the payment of all legal fees and other expenses of the lawsuit, the lawyer represents the policyholder. Under most types of liability insurance, the insurance company has the contractual right to settle or defend the case as it sees fit. The policy owner has an opportunity to provide input, but the company typically has no obligation to obtain the policyholder’s consent or approval.