Renter's insurance: small policy, large gap without it

A surprising number of tenants believe the landlord's insurance covers them. It covers the structure and the owner's interest in it. The tenant's furniture, electronics, clothing and personal property are not part of that, and neither is the tenant's own liability. A renter's policy typically has three parts. Personal property, for belongings. Liability, if someone is injured in the unit or the tenant damages someone else's property — including the unit above and below in a condominium, which is where this becomes expensive. And loss of use, which pays for somewhere to stay while the unit is uninhabitable. Two Florida-specific notes. Flood is not covered by a standard policy and never has been; it is a separate policy, and it matters in a state where a large share of buildings sit in or near mapped flood zones. And in a condominium the association's policy and the unit owner's policy divide responsibility between them in a way that leaves a defined gap — a tenant sits inside that gap. Coverage limits should be chosen by inventory rather than habit. Photographing the contents of each room takes ten minutes and is the difference between a paid claim and an argument. Many landlords now require a policy and require being named as an interested party, which simply means the insurer tells them if it lapses. It is a reasonable request, and for the tenant it is one of the cheapest lines in the monthly budget. This article is general information, not legal, tax or financial advice. Rules change and every deal is different — check your own case with a licensed professional. Alberto Zaltzberg — Adonait · adonait.com