Insurance is a legal term that is used in the context of financial loss. Insurance provides in way protection from loss. Person or company or entity which provides insurance are known as Insurer, and one who gets the benefits of purchase and insurance is called as a policyholder. Concerning property or land, insurance plays an important role for both Renter as well as for tenant. So Renter and Tenant Insurance are very necessary if land or property is given to someone or one who owns it for a temporary period.
Tenant Insurance vs Renter’s Insurance
The main difference between Tenant and Renter’s Insurance is that in Tenant Insurance, the tenant possesses land or real estate for several years. Tenant Insurance is somewhat similar to Landowner’s Insurance. Because for a long time, it holds the rights as landowners. Renter’s Insurance safeguards the rights of the renter living in the house or apartment of the Landowner.
Tenant Insurance is in a way very much like Landowner’s Insurance as Tenant becomes a legal head of the property or land for a good amount of times or for an indeterminate time. The tenant is like a legal guardian. Tenant Insurance contains a policy that covers the cost to build or replace property or land in natural calamity as well as if any harm is done to items of furniture, clothing, jewelry, appliances, and dishes etc.
Renter’s Insurance is for the person who lives in the property but doesn’t own it. But they want to protect their personal belongings that are inside the house or property. Renter’s Insurance didn’t cover their rights and properties in Landowner’s or Tenants Insurance. Renter’s Insurance will only provide them with the replacement cost if anything is damaged or lost on the property.
Comparison Table Between Tenant Insurance and Renter’s Insurance
| Parameters of Comparison | Tenant Insurance | Renter’s Insurance |
| Dwelling | It is covered in Tenant Insurance. | It is not covered by the Renter’s insurance. |
| Cost | It is costlier than Renter’s insurance. | It is less expensive. |
| Liability | Personal Property and Liabilities are covered. | All the liabilities are not covered. |
| Origin | It came in the year 1600s from London. | It came in the year 1950s from America. |
| Best Policy | Geico, Metlife, Progressive, Foremost etc. | Auto Club of Southern California, State Farm, ASI Progressive etc |
What is Tenant Insurance?
Tenant Insurance gives the tenant a legal right, like a landlord or owner temporarily. Tenant Insurance consists of a property or land that is given to the tenant for a longer length. It is just like a personal property for a tenant. Insurance covers the freehold of a property, which means that it can be given on a lease.
Ownership of property is purchased, and it can be sold and bought according to Tenant Insurance. Insurance consists of terms of the agreement, contract and property law intertwined. The history of Tenant Insurance can be traced back to the time of the Middle Ages in England. It explains the relationship between landlord and tenant. A tenant, when gets the land or property from the owner it can do whatever it wants with the property. For example, it can rent the property, make changes to the property, do farming etc.
Tenant Insurance includes that tenant should be given physical possession. It should be able to have a habitable condition. If the landlord breaches the law, then Tenant can sue him/her and also get covered for the damages being done. The dwelling of the tenant, personal property and all the liabilities are covered just like the owner gets in-house owner’s insurance.
What is Renter’s Insurance?
Renter’s Insurance is a policy that is made for the renter to safeguard their rights. There are fewer benefits covered in the Renter’s Insurance, unlike Tenant Insurance. It does not include a dwelling and structure in the coverage. But the personal property is covered like vandalism, theft, fire etc. It provides them with certain liabilities. It is less costly than Tenant Insurance.
In many rental properties, it is a must that a renter should have renter’s insurance. In the Renter’s insurance, three things are covered i.e.personal liability, loss of use and personal property. Companies who are the insurer continuously track down renter’s insurance and check the database of expiration dates, cancellations, and additional information about a property, landlords etc. There is a variation in the policy of Renter’s Insurance depending upon the company.
For example, some companies will keep track of just their policies, while others will see both third-party policy and the company’s policy. If a renter also has the benefit of additional insurance alongside Renter’s insurance, then it has more rights and coverage than the owner of the house. Renter’s Insurance was started in the mid 20th century alongside Homeowner’s Insurance(although it existed way before). But it was started in New York, America.
Main Differences Between Tenant Insurance and Renter’s Insurance
- Dwelling and structure are covered in Tenant Insurance. Dwelling and structure are not covered by the Renter’s insurance.
- Tenant Insurance is costlier than Renter’s insurance as it is for an indeterminate time. Renter’s Insurance is less costly than it is for weeks, months or years.
- Personal Property and all the liabilities are covered in Tenant Insurance. Personal Property and Personal liabilities are only covered in Renter’s Insurance.
- Tenant Insurance came in the year 1600s from London and dates back to Middle Ages. Renter’s Insurance came in the year 1950s from America.
- Geico, Metlife, Progressive, Foremost etc., are some of the examples of Tenant Insurance. Auto Club of Southern California, State Farm, ASI Progressive etc. is some of the examples of Renter’s Insurance.
Conclusion
Both Tenant and Renter’s Insurance covers the property rights. But Tenant Insurance has more rights than Renter’s Insurance. A tenant can make use of the property or land as he/she wants. It can also make changes. Whereas a Renter cannot make any changes except for personal property. Tenant Insurance makes the tenant a legal guardian of the property and holds responsibility, whereas Renter’s Insurance makes the renter a free person, and he/she is not subjugated to any responsibilities as all the things get covered.
References
- https://millersmutualgroup.com/wp-content/uploads/2020/06/Rental-Insurance-Benefit-Landlord-Tenant.pdf
- https://heinonline.org/hol-cgi-bin/get_pdf.cgi?handle=hein.journals/drklr55§ion=21