Do I Need Tenants Insurance if I’m Renting a Property?
Tenants’ insurance and renters’ insurances are one and the same. These are terms that are used interchangeably in the industry. Tenants’ insurance is designed to cover the cost of damages that you unintentionally caused to your building, apartment complex, or adjacent units.
You will also usually be covered in the event that someone gets injured while on your property. Also, while tenants’ insurance is not mandatory in order to rent an apartment, condo, or house, it may be of great benefit to you.
The cost to repair or replace damaged or lost items will usually greatly exceed the cost of tenants’ insurance. Here, we will discuss whether or not you need tenants’ insurance if you are renting a property.
What Does Tenants’ Insurance Cover?
You will be covered in the event that someone on your property is unintentionally harmed. You will also be covered in the event that you unintentionally cause damage to your rental unit, other units, and/or the building itself.
For example, you may accidentally start a fire while cooking breakfast. Or, someone may accidentally slip and injure themselves while using your bathroom. Without tenants’ insurance, you may be required to pay for all of your medical bills out of pocket.
You may also need to pay in order to cover your legal bills in the event that they decide to sue.
Many of your belongings will also be replaced in the event of a flood or theft. Many additional living expenses may also be covered, depending on your coverage, including food, bills, and other living expenses.
Moreover, if you enjoy traveling, then you will enjoy peace of mind knowing that your belongings will be protected from theft, arson or Acts of God while you are away.
Read More: Tenant Background Check
How Much Does Tenants’ Insurance Cost?
Tenants’ insurance is one of the most affordable types of insurance in the market. You can expect to pay roughly $15 a month to obtain tenants’ insurance coverage.
Interestingly, despite only costing approximately $15 a month, most policies will provide several thousand dollars worth of protection. Also, please note that rates will vary depending on your province or state.
For example, provinces or states prone to extreme weather conditions, such as tornadoes, hurricanes, and earthquakes, may be subject to higher premiums to offset some of the risk involved.
Your postal/zip code and the type of dwelling you inhabit will also affect how much you pay. Older homes usually cost renters more, as they tend to have outdated technology and limited security measures.
Newer homes, conversely, tend to cost less, as they are more likely to include enhanced safety systems and features, which will help reduce premiums.
Tenants’ insurance can provide tens of thousands of dollars worth of coverage and can provide peace of mind, while also protecting your most valuable assets and providing a liability guarantee.
Can I Choose Additional Coverage For Tenants’ Insurance?
If you are not satisfied with what is covered in your policy then you can obtain additional coverage in order to enjoy comprehensive protection.
For instance, you can add accidental damage coverage. Examples may include spilling red wine on your couch, smashing your television set and other such accidents.
Personal possessions coverage can also be added to your policy. You will be covered in the event that your valuable assets are taken out of your home. Examples include laptops, desktops, video game consoles and cellphones.
Your policy may also provide coverage if items are stolen and taken abroad, albeit coverage may vary by country. In addition, if you are worried about legal fees in the event that a visitor or neighbor decides to sue you, then legal expense coverage can be added to your policy.
You may be required to dispute a claim in the future, and legal expense coverage will cover all of the costs incurred during the legal proceedings.
Tenants’ liability coverage is yet another form of coverage that can be added to your policy if you wish. For example, you may normally lose your security deposit in the event that you damage your landlord’s property.
Tenants’ liability coverage will ensure that you do not lose your security deposit in such a scenario.
It is important to read your policy very carefully in order to determine if you will require additional coverage. Additional coverage should be seen as a contingency plan for a hypothetical worst-case scenario that may arise in the future.
Also Read: Pay-As-You-Go Insurance: Pay Insurance Premium Only on the Distance you Travel
Protect What Matters Most
Protecting your home and your belongings is of the utmost importance and should be your top priority before you rent a property. Tenants’ insurance will provide you with personal property coverage.
For example, if your apartment is badly damaged by a kitchen fire, then your damaged belongings will not be covered unless you have tenants’ insurance. Also, if your home is broken into, and many items are stolen, then you will not be covered without tenants’ insurance.
You will also be covered in terms of temporary living expenses. For instance, if your home is damaged due to a flood or earthquake then you will need a place to stay until your home is repaired.
Tenants’ insurance will cover temporary living expenses until you are able to return to your home. Medical bills and personal liability protection are yet another reason why tenants’ insurance is strongly recommended.
For example, if you decide to throw a house party and someone injures themselves while at your party then you will be protected in the event that they decide to press charges against you. As can be seen, there are many reasons to consider getting tenants’ insurance.
You will be provided with tens of thousands of dollars worth of protection and will usually only need to pay about $15 per month in order to obtain tenants’ insurance. Please speak to your insurance provider in order to determine if tenants’ insurance is right for you and your family.
Sources:
Tenants Insurance: Why Your Renters Should Get It – Lemonade Insurance
Tenant’s Insurance – All You Need To Know – Forbes Advisor UK
Tenant’s Insurance 101 | TD Insurance
How Much Is Renters Insurance? Average Renters Insurance Cost 2021 (policygenius.com)
