Landlords and apartment owners are reluctant to placerestrictions and requirements on renters since it could cause themto look for housing elsewhere.

While understandable with regard to some aspects such as smokingon the premises or allowing pets — there is one requirement thatshould not be ignored: Renters' insurance.

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Protection for the landlord and renters

Many renters are under the assumption that if they are living inan apartment or rented building, they are protected under thelandlord's insurance policy. This is only partially correct.

Most insurance policies held by a landlord will cover damage tothe structure of the building and very limited coverage for certaintypes of negligent situations, such as a landlord who is requiredto treat iced sidewalks. If the sidewalks weren't treated and atenant slipped and fell, the policy might provide coverage for anymedical bills.

Coverage for personal belongings that may be damaged by storms,theft or fire is not provided to renters under the landlord'sinsurance policy. Injuries that occur to guests and even damagecaused by other renters, such as a hot water tank leaking, may notbe covered either under a landlord's insurance policy. However, these situations would be covered under a Renters'insurance policy.

Requiring, or at least strongly encouraging, renters to carryRenters' insurance protects not only the individual renters, butalso the landlord and apartment owner, as well as the other rentersin the building.

Every Renters' insurance policy will vary depending upon thecompany that provides coverage, how much coverage is purchased andthe exact situation — but the following are some examples ofsituations where renters insurance will prove invaluable:

Renters insurance will cover some contents in the event of aburglary. (Photo: Shutterstock)

1. Coverage for theft of personalbelongings

The FBI estimated that there were over 2 million burglaries in the United Statesin 2010. In the event renters are victims of a burglary and theirpersonal belongings are stolen, Renters' insurance will providecoverage to help replace the items that were lost.

Some Renters' insurance policies will also provide coverage ifthe personal belongings are not in the home. For example, if you goon vacation and a laptop is stolen from the hotel room, Renters'insurance may provide help replacing that laptop if you file aclaim.

Failure to clean the lint trap is one of the leading causes ofdryer fires. (Photo: iStock)

2. Protection against dryer fires

Dryer fires are more common than people think. The U.S.Fire Administration estimated that there are approximately2,900 dryer fires a year that account for close to $35 million in property loss or damage.

Renters' insurance can provide protection to renters in theevent a dryer fire should occur. Renters' insurance will providecompensation for loss of personal belongings, damage to otherrenters' belongings, replacement of the dryer and other damagedappliances, and any structural damage that may have occurred as aresult.

Renters insurance may cover the loss of some belongings andliving expenses after a major disaster. (Photo: P.Harman/PC360)

3. Help with living expenses when displaced by a stormor other natural disaster

Renters who find themselves displaced after a tornado,hurricane, fire or other natural disaster may be able to seek helpfrom their Renters' insurance.

Renters' insurance may provide compensation that will help theseindividuals find temporary lodging. If relocation services areneeded because the building is uninhabitable or not able to berestored, the Renters' insurance policy may help with that,too.

Read the policy carefully to make sure all risks arecovered. (Photo: Shutterstock)

4. Getting proper Renters' insurancecoverage

There are dozens of different types of Renters' insurance andall do not provide the same type of coverage. Here are somesuggestions for do's and don'ts associated withRenters' insurance for apartment owners/landlords:

• Make sure personal liability is included.
• Determine how much coverage may be needed to cover repairscaused by damage.
• Make sure coverage includes unexpected actions — storms,neighbors causing damage, theft, etc.

Even though it isn't the responsibility of landlords/apartmentowners to know this information, it can help them determine whattype of insurance to encourage renters to purchase, and how muchcoverage may be needed to provide protection for theproperty/tenants.

Related: 3 risks to consider if you own rentalproperty

Renters' insurance provides benefits and peace of mind forrenters and landlords. (Photo: iStock)

5. Keeping insurance premiums down

A common fear landlords have regarding Renters' insurance istheir tenants may believe the monthly premium is too high topay.

Luckily, there are things landlords and apartment owners can doto help keep Renters' insurance premiums to a minimum:

• Regularly maintain the property by cleaning gutters, dryervents and other potentially hazardous areas.
• Implement safety measures on property — proper trash disposal,requiring tenants to notify landlords/maintenance of anything thatneeds to be fixed.
• Require all tenants to carry a minimum Renters' insurancepolicy from a reputable insurance carrier.

Renters' insurance can be invaluable should the unexpectedhappen. It will protect not only the landlords/apartment owners,but all tenants who live in the building or on the property.

Jeff Cronrod, a board member of the Calabasas,Calif.-based American Apartment OwnersAssociation, has more than 40 years ofexperience as a landlord and has owned, rehabbed, developed andmanaged more than 4,000 rental units throughout the UnitedStates.

Related: Renters insurance: Here are 5 key facts that allagents & brokers need to know

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