When you move into a rental apartment or home, you were most likely advised to purchase renters’ insurance. But seldom do tenants purchase one. In fact, fewer than 40% of renters actually purchase insurance. It could be due to the belief that nothing bad can happen to us, or because tenants wrongly assume they are covered by the landlord’s insurance. Tenants also underestimate the value of their belongings while overlooking personal liability. Read on to know more about tenant insurance and why you need it.
What does Tenant insurance cover?
As we mentioned before, a number of people assume they are covered for disasters like fire and flooding through their landlord’s insurance policy. This is not true. Yes, property owners will most likely have an insurance policy on the building, but that is only against structural damage in case of calamities like fire, storm, flooding or earthquakes. It does not cover damage to the tenant’s personal property. That is one of the main reasons you need tenant insurance.
Tenant insurance covers the cost of lost, stolen, damaged or destroyed contents of your home. They may be electronics, furniture, jewelry or clothing. So make sure you take complete stock of your possessions and come up with an estimate, so you know for what amount you need insurance. You could also choose an insurance plan that covers the cost of replacing your damaged or stolen items.
Additional living expenses
There may be a number of situations where you may find that you cannot stay at your residence. A fire or a damaged roof may require you to stay away from home for a while which may cause you considerable overhead. Your renters insurance will cover any costs you may incur for stay, food and other necessary services during that time.
Personal liability coverage
Personal liability costs may not seem important to you until someone is injured at your apartment. Any guest or visitor may see fit to claim you are liable for medical expenses or loss of pay at work, for having an accident at your residence. Having a renters insurance in place will help you cover any accidents or mishaps that happen to visitors or other tenants, like a slip and fall or water leaking into the apartment below.
When looking for a renters insurance, make sure you find the right one for your needs. Take a look at Duuo’s renters insurance options here- https://duuo.ca/tenant-insurance/tenantcube/.