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Is it worth buying tenant insurance?

Written by:
David Dyck
Murat Demircan

Renters, or tenant insurance is the same term. It's a policy that protects you from property loss and liability when renting/leasing a living area from another person.

Important Information to Know

     - Renters insurance is available to those who rent or lease their properties.

     - It protects you from the damage or loss of personal property that you keep in your home.

     - It is more affordable than other types of property insurance.

     - To ensure that your coverage is not compromised, it's a smart idea to create a home inventory.

image © Muntzir Mehdi 

What is the cost of renters insurance?

Renters insurance is like all types of insurance. Although the cost of renters insurance can fluctuate depending upon the individual circumstances and the choices made by the policyholder, it is generally a less expensive form of property insurance. It can be purchased for as low as a few hundred dollars per annum.

Renters insurance is worth considering because it is inexpensive, and can save you thousands of bucks.

Renters insurance is mandatory?

Although renters insurance is not required under law like auto insurance, it is recommended that you have coverage for your belongings as well. It may be required by your landlord in certain cases.

What does Renters Insurance do?

Renters insurance covers your personal property, including items that are stored in a locker in your building or in storage designated for your exclusive use. It also protects against theft and damage. You also get coverage for personal liability, such as if you injure someone. If your home is damaged or you need to temporarily move, renters insurance can be a great option. You can also get renters insurance in the event of identity theft or credit card fraud.

How does Renters Insurance work?

Renters insurance is different from other types of property coverage, such as home or condo. It doesn't cover the space, but the contents you keep inside it (like clothes, furniture, electronics, etc.).

If you are a tenant in an apartment building and he causes a fire, you can claim damages to your personal property. You may also be entitled to living expenses while repairs are made.

image © Muntzir Mehdi 

What do I need to insure my renters?

Renters insurance is highly recommended to anyone who rents a place to live. Renters insurance is a smart, affordable investment because of its lower cost and peace-of-mind. Although you may not believe that you have a lot of value as a renter it is easy to forget how much they add up over time.

It is important to know that your personal liability coverage also covers you if you have guests over frequently. You could be held legally responsible for any accidents that happen where you live.

What Happens if I don't have Renters Insurance

Worst-case scenario: You lose all your personal property, are without a home and have to rely on your savings to get yourself back on track. You can have peace of mind knowing that you will be able to handle any bad situations for a mere few hundred dollars per year. You may find yourself in a more difficult, but less tragic, situation if your personal items are stolen or damaged and you don't have insurance.

What does Renters Insurance cover for damage to Landlord's Property

Each landlord should have a separate policy to cover damage to the building's physical structure. Your personal property is not covered by your renters policy.

What does Renters Insurance cover?

Here are some common coverages you might find in a renters' insurance policy.

     - Property theft - A renters policy can protect your belongings from theft. It may also cover items stolen while you are traveling , moving , or stored elsewhere (for up 90 days).

     - Vehicle burglary - Contrary to popular belief, auto insurance doesn't cover items stored inside your vehicle. However, renters policies do.

     - Property damage - Your renters policy might cover you for replacing personal items that are damaged by someone else.

     - Personal liability - If someone is injured in your home, you may be held legally responsible. Liability coverage is available to help cover injuries to other people or their property.

     - Identity theft - Some renters insurance policies cover the costs you incur to restore your identity.

     - Your policy may cover emergency living expenses, such as if you have to leave your home due to damage.

Talk to your Insurance Advisor about possible endorsements that could be added to you policy.

What does Renters Insurance not cover?

While renters insurance covers a lot, it does not cover everything. You should not expect that your policy will cover the following:

     - Vehicle theft and damage - Although personal items in your vehicle are covered, coverage for the vehicle is not available. You can only get coverage for this under your auto insurance if you have chosen optional Comprehensive coverage.

     - Your roommate's property. Your policy doesn't automatically cover everyone who lives in the same area. Although multiple people can be named on a policy, this is often not advised as a roommate can claim against your premiums.

    - Flood damage - Renters policies do not typically cover this.

     - Renters policies do not usually cover pest control costs.

By Liliana Alvarez

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