Owning rental property is a great investment. And dealing with tenants can be just as pleasant as long as you take some precautions when selecting them. It’s also best to protect yourself from frivolous lawsuits and misunderstandings by asking your renters to carry insurance. Here are some important things to know about renters insurance in New Jersey.
What does renters insurance cover?
There are various types of policies that cover various things. For example, if you live in cooperative housing, you can speak to your agent about co-op insurance in New Jersey. But most renters insurance in New Jersey covers the following:
- Personal property: covers renter’s property if it is damaged, stolen, or destroyed.
- Loss of use: covers renter’s cost of living if misplaced due to a disaster. These costs might include temporary housing, food, and other essentials.
- Liability: covers court costs renters might incur if found legally liable for injuring someone else or damaging another person’s property.
- Medical: covers certain medical costs of people injured on the insured’s property or residence. It could also cover things that happen off the property in some instances, such as if the renter’s dog happens to bite someone in the park.
Renters insurance caveats
It’s important to note that not all insurance is the same. Policies and companies vary on what they will and will not cover, and some offer additional coverages for higher premiums. For example, some policies do not cover earthquake insurance but might offer it as an add-on to their regular premium. They also might not cover personal luxury items or non-essentials such as jewelry, artwork or fine furs, but again, may offer add-on endorsements for them. It’s important to let your renter know that they are responsible for finding out what their policy will and will not cover.…Read More