The Important Reasons Why Renters Need Home Insurance Too
Many people think of home insurance as something that only applies to homeowners. There are some very important reasons, however, why renters should have a home policy of their own. Tenant insurance is designed specifically for the needs of people who are renting their home, and it can make a very big difference in the event of a fire, theft, or other disaster. Obtaining tenant insurance quotes is fast, FREE and easy.
Contents Coverage for Renters
When you rent your home, your landlord is responsible for the building itself and everything else on the property. Many renters believe this means that the landlord’s policy will also cover their personal property. This could be a very expensive error. Your landlord is not responsible for your property.
If there is a fire and everything is destroyed, the landlord’s insurance will pay to replace the building and everything about it including carpets and light fixtures. What it won’t replace is your television, your clothing, your furniture, or anything else you own. The only way to protect your personal property is to purchase a tenant insurance, also known as renters insurance, policy.
This policy covers your personal property up to the limits named in the policy against perils like theft, fire, and several other possible risks. In the event of a loss, this policy is the only way to get any compensation for your property.
Just like on a homeowner’s policy, the personal property coverage on a renter’s policy extends anywhere you go. That means items are covered in your car, on vacation, at school – just about anywhere you go.
Although you don’t own the home, you can still be held responsible for what happens there. Imagine a friend is visiting, and slips on a toy your child has left on the floor. That friend’s injuries could be seen as a result of your negligence, and you can be held responsible for the medical bills that ensue.
Even if your friend doesn’t want to sue you, a tenant insurance policy provides guest medical coverage that can be used for the expenses not covered by the provincial medical plan, such as medical devices that might be needed as part of recovery.
It’s an unfortunate truth that lawsuits are all too common these days. A tenant insurance policy with liability coverage can also cover you for negligence issues that happen off your property as well. Most people don’t realize just how important liability insurance is until they need it.
Landlords May Require It
More and more landlords are requiring that their tenants carry an insurance policy as a way of protecting themselves as well. That liability coverage can kick in to protect you if you are responsible for damage to the property while you are living there. This means that you are protected from being sued by the landlord for damages, and the landlord is protected from having to pay out of pocket for repairs.
This makes tenant insurance not just a good idea, but also a requirement in some situations in order to move into a rental. It gives peace of mind to both parties and ensures that everyone is protected from the unexpected.
Tenant insurance basically offers renters all of the perks of homeowner’s insurance minus the cost of covering a structure. This makes these policies very affordable, even for those who are on a tight budget or just moving out on their own for the first time. In fact, people who are tight for cash are those who need such a policy the most; after all, if they are the least likely to be able to absorb a loss.
It takes only a moment of consideration to realize how hard it would be to replace everything you own if it were destroyed. Renter’s insurance makes sure that you have the coverage you need when you need it, and that you get all of the benefits even if you don’t own your home.