If you ask the average person about the kinds of insurance available, most people would answer “home, auto, life and medical.” But what if you’re a renter? The owner of the home or building may have insurance on the structure itself, but did you know the importance of tenant insurance?
The question of “what information do I need for a home insurance quote?” is not only for homeowners, but it also applies to renters. Tenant insurance is an important tool for renters. It can provide peace of mind in knowing that your personal belongings and contents in your rented home are covered in the event of a loss. It also helps to keep you safe from liability for any damage that may occur to someone else’s property or unintentional bodily injury as a result of an incident.
How is tenant insurance different from home insurance and why do I need it?
Typically, the owner of the home or apartment building you reside in has homeowner’s insurance to help cover the loss of the building in the event of a fire or other damage. But in the event of damage or theft, your personal items will not be covered by the landlord’s policy. Tenant insurance is necessary to help cover these items and often less expensive than standard home insurance. Here are some things that a tenant insurance policy would cover:
Liability
Let's say that a fire occurs in your rented apartment due to a candle you accidentally left burning. The fire and smoke may damage nearby units. Tenant insurance will help cover not only you but damage to other people’s property for which you’re responsible.
Personal belongings
Having a tenant insurance policy will provide coverage for the loss of your personal items due to fire or theft. It’s important to have an accurate list of items in your home such as electronics, jewellery, furniture and even clothing. It’s also a good idea to review this list with your insurance representative to ensure you have the right coverage for your needs. High-value items may require additional coverages.
Additional living expenses
Let’s suppose the apartment or home you’re renting has been damaged in a fire and the home becomes unlivable for a period of time. While your tenant policy has reimbursed you for your expensive home theater, you can’t live in the home while it's being renovated. So, where are you going to stay for a month or two?
Tenant insurance can provide coverage for additional living expenses (limits apply) for a temporary place to stay such as a hotel, while your home is repaired.
As you can see, tenant insurance is a great way to make sure you’ll have nothing to worry about in the event of damage or loss in your rented home. Finding a tenant insurance policy can be easy. If you’ve been living in your rented home and are ready to move on to the journey of owning your own home, or perhaps you’ve purchased a new car, you may be interested in what to consider when getting a home or auto quote.