Renting is Becoming the Preferred Option as House Prices Continue to Rise


Communicated Content – House prices rose by 16% in 2020. The rental market has become the go-to for a lot of people looking or needing to move. Read on to find out more.

Renting is Becoming the Preferred Option as House Prices Continue to Rise

House prices in Colorado are rising. Firstly, this is because there is a low supply of them and a high demand. People aren’t wanting to sell, but, also, as interest rates on mortgages are low and first-time buyers are trying to capitalize on this by getting on the market, those who go onto the market are snapped up quickly. It’s a difficult moment for the real estate market. However, the rental scene is strong. (This is actually making the buying market more complicated as investors are sensing the opportunity to buy properties to let.)

People are turning to rent as it’s more affordable for them. Renting presents its own challenges. One of them can be the landlord-renter relationship. A cause of this is knowing whose responsibility certain things are. Both parties can take each other for granted, especially when it comes to things like damage. It’s important to know where the boundaries of landlord insurance and renter’s insurance are.

For personal property, the key thing to know, as a renter, is what is yours and what is your landlord’s. This is, in essence, as simple as it sounds, where the distinction lies. 


So, landlords insurance covers the property itself – be it the house or the condo. All the walls, the roof, the flooring are your landlord’s responsibility. As for causes of the damage, there will be named perils in the policy for which the insurance company will pay out. In general, the criteria is often “sudden and accidental.” Things like trees falling into a storm, a porch-roof collapsing under the weight of snow, theft, fires which you didn’t consciously start, water pipe or tank bursting, among other things, will be explicitly in the policy. 

The insurance would cover how much it cost to replace the flooring or replaster the wall but not, in the instance of a pipe or tank bursting or a washing machine leaking, the cause. The fault lies with the people who installed the tank or makes your washing machine (provided you have a warranty).

Your landlord might opt for extra coverage if they live in an area that’s prone to flooding or where wildfires sometimes occur, among other natural disasters and weather. You, as a renter, don’t have access or need access, to insurance which covers the dwelling, only your personal property.

Personal Property

A similar thing applies to the landlord’s personal property. Sometimes properties come furnished – sofas, chairs, dining tables, fridges, washing machines, etc. All this will be covered by the landlord’s insurance.

For everything that’s yours, your renter’s insurance will cover it. It’s like contents insurance, essentially. Your home-based podcasting studio you’re using to record interviews with local entertainment talent in lieu of performing live, your TV, your sofa – everything that’s yours is covered. Renters insurance will cover your stuff and anyone else who lives on the property and is related to you by blood, marriage, or adoption. Your roommate, though, isn’t covered. They’ll need to sort themselves out.

For all things like personal property and dwelling coverage, there will be a maximum payout. If your PC, that expensive thing you saved and saved for, was damaged by the part of the roof collapsing on it, or something that’s a named peril, has more value than the maximum payout, then it might be worth looking at getting extra coverage. Additionally, there will be things that aren’t named in the policy which can cause damage and, therefore, the insurance won’t reimburse you for them. Natural disasters are often one of them. For instance, Colorado has its famous river which gives you plenty of reason to roam and walk beside but it is known to flood, and flooding caused by heavy rainfall, snow melting – any natural reason – will not be covered. You’ll need to get extra coverage from a private firm or the federally backed National Flood Insurance Program.

Personal Liability

This is a more difficult one. Let’s use the example of the roof collapsing on your PC. Your mate had come over because you wanted to play a multiplayer game today on LAN, and they were set at your computer setting everything up while you were out getting the chips and dips as the roof collapses. It hits them and injures them. This would fall under the landlord’s personal liability, as it’s a structural thing – as long as you, the renter, did not contribute to the issue or neglect to report it.

Again, the same friend returns to the house after he’s recovered from the roof incident, and this time they slip on a spilled drink. While bemoaning their bad luck, they also press charges to pay for their medical bills. This is where the personal liability of renter’s insurance kicks in. 

Before getting into a rental situation, you should know the ins and outs of what’s expected of both you, as a renter, and the landlord. Know your rights and know your insurance.