What Is Tenant’s Insurance?
- If you rent an apartment or house, tenant’s insurance helps protect your personal possessions and furniture against damage from hazards such as fire, vandalism and theft.
- Insurance pays for some of the extra costs you incur to help you get back on your feet following a loss.
- Insurance also protects you if you are deemed financially responsible for injury, or damage, you unintentionally cause.
Why Do I Need Tenant’s Insurance?
As a tenant, you are responsible for the harm you may cause to any part of your building, and to others who live or visit there.
- If someone slips and falls in your unit, you may be held financially responsible for the cost of the injured person’s pain, suffering and medical bills.
If you accidentally start a kitchen fire that damages your apartment and other units, you may have to pay for the damage to all of these units, as well as your own
Liability – A standard insurance policy provides coverage up to $1 million. It will cover the cost to defend you in a lawsuit. It also covers you should someone successfully sue you. Taking into consideration the high dollar amounts that are regularly being awarded by courts in liability cases, however, this liability limit may not be sufficient and you can choose to increase your coverage to $2 million.
Contents – Covers the cost to repair or replace furniture, clothing and household items, due to an insured loss. Even if you think your belongings have little value, you may be surprised by how much it would cost to replace everything, all at once.
Additional Living Expense – Coverages pays for any necessary additional expenses incurred by you, while your apartment is being repaired. This can include hotel bills and meals. Coverage pays for unexpected expenses when you cannot live in your apartment due to an insured loss.
How Much Does Tenant’s Insurance Cost?
The cost of tenant’s insurance depends on a number of things including:
- How much insurance you need
- The location of your dwelling
- How your unit or apartment was constructed
- Your insurance company
- Your claims history