Many people have a misconception when it comes to renting an apartment or home, and that is that the landlord’s insurance covers everything. This is incorrect. The owner’s insurance likely covers the building itself and any appliances included in your lease, should there ever be a fire, for example. However, it would not cover anything that belongs to you, the renter. This is why it is so important to have tenant insurance. This type of insurance would cover the things you have inside your rented home, and also has other benefits too.
Everything you have
Think of how much it would cost to replace everything in your home…from your clothes, furniture, and electronics…right down to the dishes and food in your kitchen cupboards. It certainly adds up when you start to look at everything you own. Tenant insurance can protect all of that. In addition, it can cover your belongings that you take out of your home. For example, your bag is stolen on the subway, and it contained your cell phone and laptop. If you don’t have insurance, you would need to replace these things out of pocket.
Extra living expenses
If there were a major fire in your apartment building, you may not be able to live there while repairs are being carried out. Tenant insurance can help cover the extra costs of hotel and meal expenses while you are out of your home.
Unfortunately in life, accidents do happen. Liability coverage forms part of a tenant insurance policy, thereby protecting you when your son or daughter breaks a neighbor’s living room window while playing pickup hockey in the street. Or when your guest slips and falls, knocking out a couple of teeth on the edge of the kitchen counter. Liability coverage can protect you from the unforeseen expenses of replacing a neighbor’s window or paying for someone else’s dental bills.
Tenant insurance can also cover you for identity theft, which unfortunately is becoming more and more common these days. In the process of sorting out the identity issues, you may need to spend a lot of time and incur various expenses such as legal fees, certified mailings, and lost wages.
If you rent your living space, whether it is a studio apartment or a large house, it simply makes sense to have tenant insurance to protect yourself from life’s unexpected problems. An insurance broker can help you to understand and choose the coverage that makes the most sense for you.