What Does Tenant’s Policy Mean?
A tenant’s policy is an insurance policy that protects renters from losses due to damage caused to the property itself, loss of personal property, and the liability of harming those on the property. It is similar to homeowners insurance and protects against similar perils.
It is also known as a renter’s policy.
Insuranceopedia Explains Tenant’s Policy
Often, landlords require tenant’s insurance as part of the lease. However, although landlords must purchase on a policy insuring the property as a whole, it often does not extend coverage to the personal property of renters, and tenants are still legally responsible to any damage they cause to the property as well as personal liability. Because of this, a tenant’s policy may represent a wise investment and turn out to save buyers money in the long run.