The labels for most types of insurance generally reflect who or what is covered. For example, automobile insurance is a policy that protects the car . . . and driver. Homeowners insurance is coverage for the home . . . and property owner. Medical insurance is coverage for health-related expenses . . . and the patient. Renters insurance is not vastly different. It is coverage for the renter’s personal property . . . and the renter (aka tenant). So who pays for renters insurance?
You are right . . . the tenant (or renter) pays for renters insurance. Who pays for renters insurance may surprise some when they learn the landlord’s homeowners policy generally does not cover tenant belongings. The homeowner’s policy generally covers the structural areas of the physical property. It is renters insurance, instead, that protects the tenant’s personal belongings up to the coverage amount.
In addition to protecting personal belongings, renters insurance insures tenants from liability or loss of use. For example, if a water line bursts and makes the home uninhabitable, then renters insurance will help cover the cost of a hotel while the rental property is under repair. Landlords like tenants to have renters insurance as it provides protection for tenants when the unthinkable happens.