5 Reasons Why You Need Tenants Insurance
It is no secret that insurance is vitally important. Car, life, home or medical insurance coverage is necessary to protect you in the case of emergency or an accident. Yet, many renters fail to purchase tenants insurance. Similar to home insurance quotes, the quotes for tenants insurance (also renters insurance) depends on many variables. However, the good news is that tenants insurance tends to be far less expensive than many other types of home insurance policies, because it doesn’t include coverage on the actual building (which tends to be the bulk of home insurance costs). Considering the relatively low cost of tenants insurance, not carrying coverage is an unnecessary risk. Here are the top misconceptions about renters insurance and why you need a policy to protect you:
1. My landlord’s insurance policy will cover me.
While your landlord may have insurance coverage on the building where you are renting, that insurance is in place to protect the structure and the landlord’s own personal liability in case someone is injured on the property – not your possessions. As a renter you should carry your own tenants insurance to protect your belongings from potential risk.
2. The upgrades I’ve made are covered by my landlord’s policy.
While your landlord’s insurance policy protects improvements that they’ve made – it doesn’t cover the improvements you’ve made. So if you’ve installed a new closet organizer or made other changes to your living quarters that are damaged in the event of an accident (i.e. fire), don’t expect to be compensated. Only your tenants insurance can provide you with that coverage.
3. I don’t own that much – I don’t need to insure my possessions.
Though you may not think your possessions would present a significant loss to you, take an inventory and you’ll see how quickly the value adds up. You don’t need to have big screen televisions or expensive art and jewelry – books, electronic media, and small kitchen appliances add up quickly! At the relatively low cost of tenants insurance, coverage to protect your belongings from fire or theft will help give you the peace of mind and comfort you need.
4. If I’m careful I don’t need to have liability insurance.
Accidents happen. That’s why we need insurance. Though you may not intentionally injure someone in your home, or you don’t plan on causing damage to a friend’s or neighbor's property, there is always a possibility that you could. Having third party liability insurance (which forms part of your tenants insurance policy at a low cost) will protect you from accidents which could cause damage or injury to another’s property and end your relationship with them if you can’t afford to rectify the damage out of pocket.
Have a dog? Even if your dog’s never bitten, third party liability insurance will let you rest easy. In the case of an unfortunate event where your dog hurts someone else, their medical expenses and any other awards will be covered by your insurance policy, rather than you trying to find the money to compensate the affected person(s).
5. My landlord will look after me if I have to vacate my apartment.
Your landlord isn’t responsible for paying your living expenses in the event when you can’t continue to live in your rented dwelling while an insurance claim is being settled or repairs are being made. This includes cases of fire, theft, vandalism, etc. A commonly missed advantage to tenants insurance is that, similar to home insurance, your insurance provider will help to cover your living expenses while repairs are being made in the case of an accident, (i.e. fire). This will ease the financial burden to you while the claims process progresses and repairs are being made, and keep you in the lifestyle that you are accustomed to.
Tenants insurance (renters insurance) is a flexible and affordable way for renters to achieve peace of mind and protect themselves and their possessions. Drivers and homeowners wouldn’t consider going without car and home insurance, and with the relatively low costs for tenants insurance, renters should also insure themselves against loss.
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