Tenant insurance is important for protecting personal items and liability. Landlords have their own insurance that doesn’t cover tenants’ belongings. Tenant insurance premiums are often low and can cover non-use and theft. It’s especially valuable for students or those with roommates.
Renters rarely think about the need for insurance to protect personal items or insure against potential liability. This is a mistake, because tenant insurance is just as important as many other types of financial protection. Tenant insurance protects personal items that a renter has in his or her rental apartment or house. Coverage may include partial compensation, or full replacement value, for the loss or destruction of these items. As with any insurance, the amount of coverage depends on the policy, the deductible, and how much a person wants to pay in monthly premium costs. Policies are sometimes designed to limit personal or medical liability in the event of a visitor’s injury while on the tenant’s leased property.
A property owner pretty much always has their own insurance, which covers issues like property damage, fire, and liability. Should the property catch fire, the tenant quickly learns that none of his personal belongings are covered. The landlord will receive compensation to repair or rebuild the property, but the tenant will receive nothing. A renter might think they don’t own enough property to justify buying tenant insurance, but they’re usually wrong. Many tenants have learned this lesson the hard way.
Just a few simple items, such as a laptop computer, flat screen TV, musical instruments or jewelry, can easily be valued over $10,000 US Dollars (USD). Annual tenant insurance premiums for this amount are often less than $150 USD. Tenant insurance often covers non-use as well. Policies that include a “loss of use” rider provide payments to the tenant for the time he is unable to occupy the damaged property. In some cases a lump sum may be offered, enabling the tenant to move into a new home.
A person might choose to pay a slightly higher premium and insure their personal property against theft. This is an especially good value for students or younger individuals, who are prone to having roommates or sharing a residence. Not everyone is lucky enough to share an apartment with a trusted friend or family member, and entering into any business transaction with a stranger is always a risk. It might not be a comforting idea to think that the person in the spare bedroom wants the tenant’s laptop or DVD collection, but that’s not out of the question. If those items turn out to be missing, the small tenant insurance premium would appear to be worth the cost.
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