If you are living in a rental property, there are chances that your landlord will have insurance in place. Landlord insurance usually includes building and content insurance that provides a cover if any damage to the structure of the building or to appliances and furnishing occurs. Keep in mind that one thing this insurance does not provide a cover for is your belongings. That is why you have to purchase tenant insurance.
What Is Tenant Insurance?
Tenant insurance is also known as renters insurance. It describes an insurance policy that protects tenants from certain risks that can affect their personal belongings. The homeowner you are renting is responsible for the protection of the building and would not be accountable for any loss or damage of your contents.
What Does Tenant Insurance Cover?
Tenant insurance provides cover to the majority of your belongings in the event of fire, theft, flood or accidental damage. Usually, this insurance can be broken down into three categories:
Personal Property Cover
It covers the cost required to repair or replace your belongings in case of damage. Personal belongings include furniture, electronic appliances, jewelry, and home appliances.
Personal Liability Coverage
It provides a cover if you accidentally damage your landlord’s contents or building. It also covers the cost of medical expenses if someone gets injured at your property and you are held responsible.
Loss Of Use Coverage
If your home becomes uninhabitable due to any disaster or extensive water leakage, tenant insurance will cover the cost of alternate accommodation. But keep in mind that it is a short term solution.
Other than these events, most insurance providers offer you additional overs, such as emergency cover and malicious damage cover. You can choose a cover according to your requirements.
Why Should You Get Tenant Insurance?
Although tenant insurance is not mandatory by law, it offers you peace of mind and protects you financially if anything worse happens. It also provides a cover if you or your guests accidentally cause damage to the landlord’s contents. Otherwise, you have to pay the cost of repair, or the landlord will cut this amount from the tenant deposit at the end of the tenancy.
Some landlords include it in the lease agreement that the tenants must purchase tenant insurance. In this case, it becomes mandatory for renters to purchase insurance if they want to rent a property.
How Much Does Tenant Insurance Cost?
The cost of tenant insurance may vary from insurer to insurer, depending on different factors. No matter if you want to purchase cheap landlord insurance or tenant insurance, the first step is to shop around and make price comparisons. You can reduce your insurance premium by choosing the right cover, paying annually and increasing your deductibles.
With tenant insurance, renting a home can become worry-free. Indeed it is affordable insurance that can protect you from future troubles.