Everything You Need to Know About Tenant Insurance
As a tenant, it’s important to understand that your landlord’s policy won’t cover you or your belongings. You need the appropriate tenant insurance policy to provide you with financial protection in the event of an accident or disaster. Learn everything you need to know about tenant insurance here.
Is it Mandatory?
Although it isn’t mandatory, many landlords will require you to have tenant’s insurance before they rent to you. While it’s not required, it’s important to have the insurance to protect you from any financial losses caused by items that are not covered by your landlord’s policy.
What Does it Cover?
Coverage for Your Belongings
The landlord’s homeowner’s policy will only cover the building repairs and replacement. It won’t cover your belongings inside or any improvements that you have made to your unit. You will only be protected if you have tenant insurance.
If a friend hurts themselves inside your apartment, you’ll be held responsible for their injuries if you’re found negligent. Tenant insurance offers personal liability coverage that provides financial protection in the event you are sued for their injuries. Most policies will also cover any damages you’ve done to someone else’s property.
Coverage for Theft
Tenant insurance will also cover any losses you experience during a burglary. This includes the replacement of any belongings that are taken from your home or car that are covered in your policy.
A house fire can completely destroy a property and everything inside. Tenant insurance will provide you with the money to buy any lost belongings. Without insurance, you’d have to repair or replace any damaged or destroyed items out of pocket.
Additional Living Expenses
If something happens to your unit and you are forced to move out, tenant insurance will also pay for your supplementary living expenses. This can be extremely valuable if the landlord needs to repair your unit and you are unable to stay during the renovations.
Additional Coverage Options
Tenant insurance won’t cover everything. It often leaves out jewellery, art, cash, and valuables. However, most insurance providers will also offer additional coverage options to cover certain items outside their standard policies.
What Does it Cost?
Tenant insurance can range from a few dollars a month to hundreds of dollars, depending on the size of your rental unit and what you need covered. The costs of insurance will also differ from one insurance provider to the next. To ensure that you’re not paying for coverages you don’t need, it’s best to seek the services of an insurance broker who can find you the right coverage for your needs.
There are many different coverage options and not everyone will be suitable for your needs. We can help you find the best policy for your current living situation and lifestyle. Call us at MLS Insurance today!