Renting a Furnished Apartment? Who Insures the Furniture?

Furnished apartments can provide a mutually beneficial situation for both renters and their landlords. Tenants may not have to worry about purchasing and moving their own furniture, and landlords may avoid having to pay for storage unit fees. But furniture often represents an expensive and valuable investment, requiring ample knowledge regarding insurance responsibilities.

Landlord Personal Property Coverage

In many cases, residential rental agreements entail a general arrangement where the landlord is responsible for insuring the building and its structural components, while the tenant covers the contents of their unit. However, renting furnished apartments puts a twist on these situations.

Fortunately, landlord insurance can still be a suitable coverage choice in these scenarios. Also known as rental property insurance, these policies typically include a component often referred to as landlord personal property coverage. This part of a policy insures belongings a property owner may leave on the premises, including maintenance equipment and furniture.

Exact policy capabilities and details may vary, but with suitable personal property coverage, a landlord can financially protect furniture and other items from many common perils, including fires, accidental damage and criminal acts.

Tenant Responsibility

While a landlord’s insurance can generally cover furniture they leave in apartments, tenants may also bear some responsibility. Renters insurance typically includes liability coverage, which can help manage third-party losses for which the policyholder is responsible, including those of guests, neighbors and, indeed, landlords.

When a resident has sufficient liability coverage, a landlord can submit a claim against their tenant’s renters insurance. Resulting payouts could help pay for restorations, repairs or replacements if a renter is at fault for damaging furniture that a landlord left on-site. For this and other reasons, many rental property owners may require tenants to carry renters insurance as part of their lease agreement.

We’re Here to Help

There are multiple ways landlords and tenants can potentially cover furniture provided for an apartment. As every situation may be unique, it’s important to talk with a qualified and knowledgeable insurance professional about options. Contact Primo Tax & Insurance today to get started.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.