Tenants’ Insurance: Must-Have Coverage for Responsible Renters
If you rent a condo, apartment, or house, don’t make the mistake that many renters do by not having tenants’ insurance. Often renters don’t worry about getting insurance because they feel that their personal belongings aren’t valuable enough to warrant insuring them. The key point to remember is that tenants’ insurance covers far more than just personal belongings: it also protects you from other, much more potentially devastating financial losses.
Top 3 reasons to have tenants’ insurance:
1.Liability coverage for accidents on the tenants’ property
Accidents happen to others: people tripping on carpets, falling downstairs, slipping on a floor – one nasty fall can lead to some serious bodily injury claims. If someone hurts themselves on the property you rent, you could be held liable for medical expenses and other costs – whether or not it’s your fault. Tenants’ insurance will help pay for those costs.
Accidents happen to the property: stoves left on, taps left running, candles left burning – these are just some of the scenarios which can lead to devastating property losses. The building owner will likely have insurance in place to cover the property losses. However, if the tenant is found liable for having caused the loss, there is a strong likelihood that the insurance company will try to retrieve those costs from the tenant.
Liability coverage limits in a tenants’ insurance policy typically range from $1,000,000 to $2,000,000.
2.Coverage for loss of personal property
If your personal property is damaged due to fire, storm, smoke damage, etc. it will be replaced under a tenants’ insurance policy. Theft and burglary coverage is also provided under a tenants’ policy… wherever your property may be in the world. So, if you’re travelling and you’re robbed, you can get insurance coverage for items under your tenants’ insurance policy.
3.Coverage for alternative accommodation
Every year we hear in the news about homes and condo buildings that go up in flames. What often doesn’t make the headlines is the gut-wrenching reality for the tenants: the city will provide hotel accommodation for three days, but after that time, the building’s residents have to make their own arrangements to find alternative accommodation. With tenants’ insurance, you typically get up to several thousand dollars to help pay towards hotel accommodation or renting another place if your home has been damaged and becomes uninhabitable. Your tenants’ insurance can even include coverage for kennelling your pets!
OK – I’m interested: How much does tenants’ insurance cost?
Tenants’ insurance is often much cheaper than most people expect. As a tenant is not insuring the building, premiums are far lower than those paid for house or strata insurance. The premium is largely determined by the $ value of coverage a tenant needs for personal property. A person with $30,000 personal property to insure will pay substantially less than someone with $100,000 personal property. Typically, for lower limits of coverage, annual premiums start at about $300. (Premiums will vary according to location, insurance history, optional coverages, etc.)
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Disclaimer: This article is designed to provide information for personal use only. Please consult your professional insurance broker for further information. Habitat Insurance Agencies Ltd is not responsible for any legal disputes of this matter.