Do I need Tenant Insurance?

If you are renting an apartment for the first time, you might be asking yourself: Should I get renters insurance? What does renters insurance cover? How much does it cost?

The short answer is YES. Many renters are believe that their landlord’s policy will cover them should their apartment or belongings get destroyed, but that is not the case. Here’s what you need to know about the under-appreciated protection policy that is tenant insurance and hopefully convince you to purchase tenant insurance.

What does Tenant insurance cover?

Your landlord’s insurance will cover any structural damage to your apartment or the building you live in, in the event of fire, flood, or some other unforeseen catastrophe.  It does not, however, cover your personal belongings. That’s where tenants insurance comes in. Remember, as a tenant you are liable – legally responsible- for any harm you cause to any part of your building and to others who live or visit there. For example, if your faulty toaster oven starts a fire that damages not only your apartment, but also the units, you may be responsible for the damages and repairs.  Tenants insurance will also protect you from liability if someone is injured in your apartment, and will cover temporary living expenses if you are unable to live in your apartment because of damage it has sustained. You are also responsible for any damages that your visitors might cause to the building.

How much does it cost?

The price of tenants insurances varies depending upon the coverage. Compare the costs between insurance companies and find the policy that best fits your needs. We find that most of our banking institutions offer tenants/renters insurance at competitive and affordable rates.

What should I consider when making my decision?

Your possessions, you might not think that you have much of real value, but what if you had to replace everything all at once, due to fire or water damage? Replacing your clothing could cost you a few thousand dollars. Even your old couch and bed might not look like much, but buying new ones would definitely cause an unexpected financial hardship. When you consider what it would cost you to replace everything, monthly insurance premiums look reasonable by comparison.

 

When thinking about tenants insurance, many people only consider the possibility of being reimbursed if their personal belongings are damaged or stolen, but the liability aspect of tenants insurance could be equally important. If a freak accident occurs in your apartment, you’ll want to be covered. You should also consider where you would live if your apartment sustained significant damage. Many tenants insurance policies will cover hotel costs until it’s safe to live in your apartment again.

 

Should I get Tenant insurance?

Even if you don’t think your personal belongings are worth enough money to warrant the purchase of tenant insurance, it’s something to seriously consider. If some unforeseen disaster befalls you, like an apartment fire or roof collapse, you’ll be glad you have it. Just make sure you don’t over-insure! Estimate the cost of replacing your personal property if it were damaged or stolen, and think about what you could financially withstand if something unexpected happened.