Did you know that as a tenant, you’re legally responsible for any damages that you cause to the building, even if it’s an accident? You’re also liable for any harm that is caused to others who visit your property. This means that if your microwave starts a fire and damages your rental, or if someone slips and falls in your apartment and hurts themselves, or if the roof fails in during a storm and your belongings are destroyed – you pay. Considering the low costs of purchasing tenant insurance, we think it’s more of a necessity than an option. If you’re not convinced, check out these reasons why you need good tenant insurance when renting.
A Landlord’s Policy Won’t Cover Your Belongings
The policy that your landlord holds for their home or building will only cover structural damages and injuries that occur because of their negligence, but it won’t cover your possessions. It also won’t cover any hotel bills, restaurant meals or moving expenses when you can’t live in the dwelling due to necessary repairs following an accident. Only your tenant insurance can cover the cost of relocation and living expenses if something happens. At the low cost of tenant insurance, it’s worth the coverage to protect all of your belongings in case of a disaster, and to cover any unexpected expenses when you cannot live in your apartment.
Upgrades Are Not Included
Your landlord’s policy will cover any improvements that they make to the property, but it won’t cover the ones you do. So if you’ve made some costly improvements and a fire breaks out, you won’t get any compensation for your losses – you need tenants insurance for that, too. A good tenant insurance policy can provide you with the coverage you need to protect any upgrades that you make to your rental.
Small Accidents Turn Into Costly Law Suits
Many tenants don’t bother to get tenant insurance because they don’t understand the potential risks. They don’t put enough consideration into the fact that accidents do happen. Even if you’re a careful tenant, a friend could slip on your stairs and brake their tailbone, which could put them out of work, forcing you into a very uncomfortable situation, forking out for damages. If you’re not covered, you’ll likely have to pay their medical bills and loss of wages out of pocket – something that could cause you financial distress.
Provides Coverage on Other Properties
There’s always the possibility that you could injure yourself at a friend’s property or accidentally cause damage to their place. In normal circumstances, you’d have to cover the bill, but with third party liability coverage, that's included in your tenant insurance. You’re protected from accidents even when they occur on someone else’s property.
Prevents You From Buying Everything Back
You may not believe that your possessions are worth a lot, but if you start to calculate the costs, you'll see just how much they can add up to. If you lose your belongings in a fire and don’t have coverage, the cost of replacing everything at once can quickly accumulate. An average person would need to be able to pay thousands of dollars to repurchase everything – something you wouldn’t have to worry about with tenant insurance.
Don’t get stuck with hefty bills – gain peace of mind and protection with tenant insurance. When you're ready to shop around, talk to one of our professional insurance brokers – we compare the prices and different levels of insurance coverage to offer you the best plan for your needs.