Having your own place for the first time is a big step since you will be responsible for your home. However, in case you decide to rent, your landlord will be the one insuring the property. Does this mean you will save up the cost of the policy? The answer is no. Even if you are living in a rented unit, you will need to purchase tenant insurance coverage.
The first thing you need to understand is this policy is not mandatory. According to the law, this is something optional. But, many landlords will ask you to get it before signing the lease agreement. This happens because even when there is insurance over the property, that won’t cover your property. That means in case of a robbery, you can file a claim, otherwise, you will lose everything.
Since tenant insurance coverage is necessary, we are going to explain all you need to know about this policy below. But first, let’s answer the first question many readers might have right now, what is tenant insurance?
What is tenant insurance?
As we stated above, renter’s insurance is a policy that will cover all your belongings while you live on a property you don’t own. To understand it better, you can think about it as cheaper homeowner’s insurance. In the market, many companies offer this type of coverage. However, we will recommend you to visit the Surex website to find the best rates.
If you are on a budget and you are thinking about skipping this coverage, here are some reasons that will change your mind.
- Without insurance, you could end up losing all your belongings because of peril. Take a moment to think about all the things you own, such as electronics, furniture, books, musical instruments, sports equipment, etc. If something happens to the rental, you won’t have enough money to replace everything. In this regard, tenant insurance coverage can help you out.
- If you have renter’s insurance, you will be covered in case there is any damage to a neighbour’s property. Plus, if you have any guests over, your policy will protect you against any damages they might be responsible for.
- We know that once you have a condo or loft, you might want to throw a party to celebrate. But what happens if any of your guests get injured? In this instance, you will be legally responsible. However, if you have tenant insurance coverage, you won’t have to worry about any legal action.
- Sometimes when people rent a property, they don’t like how it is designed. That’s why if you want to get coverage for any updates you might want to do, you should get renter’s insurance.
Now that we know that tenant insurance coverage is necessary for any rental property, it is time to look at what’s included.
What does tenant insurance cover?
Keep in mind that depending on the provider you choose, the coverage might vary. But, in general, this policy will protect all your belongings, pay for all repairs and liability cases. Plus, it will give you enough money in case you need to live somewhere because of a peril. To understand all of this better, let’s look at the items one by one.
This part of your policy allows you to cover all your belongings. The way it works is that you will be responsible for listing all the contents in your home and adding up how much it will cost to replace everything. The best part about getting tenant insurance coverage is that all your items will also be protected when you are outside of your home. That means that if you are travelling and something gets stolen, you can file a claim. Keep in mind that first, you will have to apply your deductible. Then, check if there is a replacement limit.
In case you are wondering which specific situations are covered under your insurance policy, here are a couple of them. You can file a claim as long as the damage was caused by fire, vandalism, theft, explosion and harsh weather conditions.
We know that you might have guests over in your rental. But what happens if they get injured while they are in your home and then sue you? This will be a nightmare scenario for any renter, but if you have tenant insurance coverage, you won’t have to worry about anything.
This liability part of the policy will help you pay for the medical expenses of somebody else, your family, and this includes dog bites. That’s why this might be the most important section of your tenant insurance coverage.
Additional Living Expenses
Imagine that due to peril, you cannot live in your home. This could be the worst-case scenario, but with a tenant’s policy, you will get enough money to get a hotel and even some meals. We recommend you check if the provider has any coverage limits.
Personalizing your policy
Usually, when people Google “what does tenant insurance cover?” They forget to find out how they can personalize their policy. This is a crucial factor since you can change the coverage and adapt it to your situation.
- Identity theft
Some companies offer you the possibility to include identity theft protection. The policy will help you pay for any legal fees. Plus, they can assist you in getting back all your documents.
- Valuable items
In case you have any valuable items in your home, such as jewelry, electronics or firearms, you might want to get an add-on to protect all of them. It may cost you more, but in the long run, it will bring you a lot of benefits, especially if something happens.
Getting tenant insurance coverage is important if you want to protect all your belongings while you are renting. Remember that you will need to get quotes from different providers before making a decision. Plus, even if you are only a student, when living away from your parents, you should consider purchasing this policy.