The Importance of Tenant Insurance
When a fire occurs in the middle of the night, your washing machine or dishwasher overflows and floods causing damages to the property, the first question that always springs to mind is whether or not the tenant had insurance. It is hard enough to lose the valuables and the lifelong memories that were instilled in the possessions lost during the fire, but when you have to also face starting over without any insurance protection as a backup, things can look pretty grim indeed.
Why Tenant Insurance Is Essential For Tenants:
Protects your personal belongings – The personal items in your home that are lost will be covered through the insurance. Everything ranging from clothing to electronics can be covered for events such as an act of God, fire, vandalism, theft etc.
Can provide you with temporary housing – Tenant insurance can cover the expenses of temporary living arrangements until you can either return back to your unit or find another place to live.
Provide protection for visitor injuries – While you’re pretty sure that your mother won’t sue you if she gets hurt during a dinner visit, you can’t be so sure about the handyman that you have hired to put up your chandelier. You can be held liable for any injuries that may occur on your property. Renter’s insurance can help protect you from financial loss if an accident does occur.
Cover other people’s belongings – In the example above, should the fire spread to another unit your insurance can cover the cost of replacing items belonging to the other tenant.
Why Landlords Need Tenant Insurance:
As soon as you invite anyone to live in your home with you or purchase a property that houses tenants, you’ll need to get rental insurance immediately. Don’t assume that your homeowner insurance will cover things if an accident or theft should occur. The minute that you take on a tenancy agreement you need to change your insurance over to a landlord policy. Failure to do so can result in non-coverage of the homeowner policy that you currently have in place.
Anyone that doesn’t take the time or effort needed to invest in tenant insurance is placing their financial future at risk. For the small cost of $20 – $30 per month on average that it takes to put such a policy into place, it is well worth the price. You’ll be able to sleep better at night knowing that you are covered and it’s certainly a small amount to pay for this peace of mind.