Tenant insurance is one of those things many renters think they don’t need – until they need it.
Having tenant insurance means that you and your personal items are protected if you rent your home.
However, as a tenant, you may also be legally responsible for property damage and injuries and tenant insurance will protect you in these instances too!
Overall, it is highly recommended that you have tenant insurance but here at Capital Insurance, we want to ensure you fully understand how this type of insurance can protect you and your individual belongings:
What Does Tenant Insurance Cover?
When it comes to a basic tenant insurance policy, there are three different types of coverage:
- Content Coverage: This will cover your personal belongings but it may not cover all of your valuables jewelry, which is usually subject to specific limits
- Liability Coverage: Liability coverage will protect you if you damage any property or someone is injured in your home. This covers the cost of lawsuits and medical bills up to a certain limit (usually $1 million to $2 million dollars).
- Additional Living Expenses: If damages occur and you have to leave your rental space during repairs, your insurance policy will cover meals, moving costs, and even hotel bills (again, subject to limits).
Of course, like all insurance policies, there are additional coverages you can add to provide more protection such as water protection coverage and home business coverage.
You can also adjust the limits when it comes to additional living expenses and coverage for valuables.
Do I Need Tenant Insurance?
Having tenant insurance is not mandatory but highly recommended. It is there to help you cover expenses for accidental or unexpected losses – which can get costly compared to the inexpensive cost of tenants insurance.
Also, you may believe that your landlord’s home insurance policy will protect you. Unfortunately, their insurance only covers the physical building structure such as appliances, pipes, and any upgrades in your unit.
When it comes to your personal belongings, the landlord’s policy will not cover you. It will also not cover any unintentional damage you may cause to your building or if someone is injured while visiting your home.
How to Get Tenant Insurance to Protect Your Belongings
Getting tenants insurance is as easy as speaking with a professional insurance broker but here are the steps you should take:
Determine Your Insurance Needs
Tenant insurance policies are not one-size-fits-all and how much insurance you should have depends entirely on the contents of your home.
Begin by taking an inventory of your personal belongings, preferably by taking photos or a video. For expensive items, such as large appliances, write down the serial numbers.
Organize this information along with an estimate of each item’s value.
Organize this information along with an estimate of each item’s value.
This will help you figure out how much coverage you need as well as organize proof of ownership should you have to make a claim.
This also helps you better determine what your individual belongings are worth so that you don’t under-insure yourself. You’d be surprised how much your stuff is actually worth!
Keep in mind that your insurance company probably won’t request this inventory when you sign up for tenant insurance but it’s good to have one just in case.
Choose an Insurance Company
Once you have an idea of how much your belongings are worth, reach out to insurance companies that offer tenants insurance and get quotes.
You can also ask family and friends for recommendations or package the tenants insurance with your current insurance policies (such as your auto insurance).
Ultimately, you can always talk to one of our expert insurance brokers about your tenant insurance options. A phone call is always free!
Apply for the Insurance
Once you have gone over your tenant insurance options with an insurance broker, it’s time to apply for the coverage.
With some companies, you can complete the application process online while others may want to speak to you directly to ensure you are receiving the best coverage options.
Speaking to an insurance broker is also helpful because you may need to provide specific information such as the year your building was constructed. They can help you gather this information!
Fine-Tune Your Policy
After you are approved for tenants insurance, it’s time to fine-tune the details of your policy.
For instance, there are two types of coverage available when it comes to protecting your personal belongings: Actual Cash Value and Replacement Cost.
Actual cash value will pay out based on what your property was worth at the time the loss or damage occurred. Replacement cost coverage pays the full amount to replace your items with new ones.
Even though replacement cost insurance does cost more than actual cash value coverage, it is definitely recommended if it suits your budget. Otherwise, you will have to accept replacing your items with ones that are not as highly valued as the ones you lost.
Lastly, you will have to determine an appropriate deductible, which is the amount you have to pay out of pocket before your insurance company begins to cover your claim.
A lower deductible will result in higher premiums and vice-versa, so it’s important to consider what you can pay out of pocket should you experience a loss or damage to your belongings.
Protect Your Belongings With Tenant Insurance!
The significantly low cost of tenant insurance is well worth it compared to the cost of replacing your individual belongings!
If you’re still on the fence about getting tenant insurance, go ahead and do the home inventory. Again, you’ll be surprised to see how much your belongings are actually worth and balk at the idea of replacing everything with your own money.
And when you are ready to get tenant insurance, Capital Insurance will be here to help you!
A quick chat is all it takes to ensure that your personal belongings are well protected while you are renting your home.
