Tenants who sublet their space may not be permitted in their policies.
The growing number of people who are leasing apartments and are holding off buying homes has also increased the number of renters insurance policyholders that are risking their coverage by taking actions that are not allowed by the terms of their policies.
Subletting is a common activity but is not one that is typically allowed in a policy.
According to the statistics collected by a commercial real estate firm, Reis Inc., the average cost of rent in the United States has increased by 1.3 percent and vacancy rates have fallen by 4.7 percent. This makes it very difficult for tenants to find an available apartment that they can afford. This is especially true if they need to move before the lease on their current place has expired.
Many people are finding that subletting is a prime opportunity, except when renters insurance is involved.
Though many tenants realize that they need to tell their landlords when they will be subletting because they will be moving due to a new job location, travelling, or cannot live in the apartment for another reason, few realize that they must also contact their renters insurance company, as well.
Contacting a renters insurance company is important if any part of your residency will be changing, but is especially vital if you will be leaving any of your possessions behind, such as furniture or electronics.
The senior vice president of the Insurance Information Institute (I.I.I.), Jeanne Salvatore, said that “You need to find out whether or not your coverage stays the same.” This is because the regulations will change from one company to the next, and will vary from one state to the next. Much will also depend on how frequently and how long you plan to sublet the space.
For example, a renters insurance company will view a regular subleasing individual as a very different scenario than one who is doing it for the first time and doesn’t intend to do so again. In a situation where this occurs regularly, a different type of coverage may be required, and this must be specifically issue by the insurer. It will not simply occur automatically without having contacted the issuer.