Landlord's insurance on the dwelling usually covers damage to the building, and protects landlord against claims when tenant or other person suffers injury or damage because of a condition for which landlord is responsible. Landlord's insurance almost never covers the tenant's possessions furniture, clothing, etc. in the dwelling.

COVERAGE

A tenant wishing to insure against loss caused by hazards to property such as fire, burglary, etc., can do so. Most commercial insurance companies offer the following coverage to tenants:

1) Reimbursement for loss of or damage to personal property on the premises where the damage is caused by fire, burglary, theft, vandalism, lightning, sewage back-up, basement leaks, waterbed leaks, negligence of another tenant, etc. The policy may also cover loss of or damage to tenant's personal property off the premises.

2) Reimbursement for tenant's extra living expenses if caused by a hazard insured against;

3) Protection for tenant against a claim by another person where the claim arises from an accident or because of tenant's negligence occurring on or away from the premises. For example, tenant bakes a cake, leaves in some nutshells and a guest breaks a tooth on a shell; or tenant is responsible for a fire that damages the building where he lives, and landlord sues.

Tenant may be eligible for special credits on the policy if the dwelling unit has smoke alarms, burglary alarms, deadbolt locks, if tenant is over a certain age, or if tenant's motor vehicle is insured by the same company.

Each policy contains a precise description of the extent of coverage. Tenant should read it carefully to be sure that the particular hazards he is concerned about will be covered to the extent he wishes.

In areas with high rates of crime and vandalism, commercial insurance companies may be unwilling to provide insurance. In such cases, burglary and robbery insurance may be obtained through the Federal Crime Insurance Program.

POLICY DETAILS

Buildings

The property, including outbuildings and fitted interior units, will be covered on the basis of full replacement or repair costs, subject to policy excesses, against loss or damage caused by Fire Theft Vandalism/malicious damage Lightning Oil or water leakage Smoke Subsidence Impact from vehicles, falling trees, animals, aircraft, aerials and masts Civil commotion Earthquake Aircraft is any vessel, craft or thing made or intended to fly or move through the atmosphere or space; including model aircraft, parachutes and air balloons. Explosion Burst pipes or leakage of oil Storm or flood the inundation of normally dry land by water escaping or released from the normal confines of any natural or artificial watercourse, lake, reservoir, canal or dam. Malicious acts means the willful act or acts of person or persons other than you or your agent, acting maliciously. Body corporate means the owners corporation of the strata title development applicable to the strata or unit titles legislation, which appears in the state or territory where the lot is located.

RENTERS INSURANCE

Renters insurance provides financial protection against the loss or destruction of possessions when the rent a house or apartment. While the landlord may be sympathetic to a burglary or a fire caused by iron, destruction or loss of possessions is not usually covered by the landlords insurance. Because in most cases, renters insurance covers only the value of the belongings, not the physical building, the premium is relatively inexpensive.

By purchasing renters insurance, the possessions are covered against losses from fire or smoke, lightning, vandalism, theft, explosion, windstorm and water damage like homeowners insurance, renters insurance also covers responsibility to other people injured at home or elsewhere, a family member or pet and pays legal defense costs if taken to court.

Renters insurance covers additional living expenses if unable to live in the apartment because of a fire or other covered peril. Most policies will reimburse the difference between the additional living expenses and normal living expenses but still may set limits as to the amount they will pay.

There are two types of renters insurance policies: