Well, if the owner is responsible for insuring the building, then the decision to protect yourself and insure your belongings with tenant insurance is yours.
Home Insurance for tenants or Tenants / Renter’s Insurance allows you to protect your belongings or protect yourself from having to pay compensation to third parties in the event of a loss. Tenant’s Insurance is not mandatory, but it could prove to be very costly not having it.
All Perils
An All Perils, Tenants Insurance package will provide you protection at a very small cost against unforeseeable (accidental and sudden) events that may cause damage to your belongings. These events include; fire, theft, vandalism and certain types of water damage (broken pipes or dishwasher overflow). Tenant Insurance will also protect you in the event of accidental breakage, such as water spilled on a computer, or mysterious loss, such as lost baggage while traveling. However, regular wear and tear and gradual damage are not covered.
Liability Insurance
With home or tenant insurance, you also benefit from liability insurance to protect yourself against involuntary bodily and property damage to a third party. As a tenant you are legally liable for damages to your dwelling as well as for the safety of your visitors. Despite taking preventive measures, mishaps can still happen. You forgot to turn off the water and your neighbor’s or apartment below yours is flooded… your dog bit the mail carrier or a visitor putting flyers. If you are held liable for the loss, your insurance company will compensate the concerned parties and/or your landlord. A Tenant Insurance policy can provide you with peace of mind knowing you have liability insurance protection in place.
Additional Living Expenses
As an insured, you will also have the risk protection covering additional living expense that will allow you to be relocated if your home or apartment is subject to a covered loss and becomes unfit for occupancy or uninhabitable. This protection also covers additional living expenses you may incur, such as food and travel, in the event you suffer a loss.
Home Insurance for Tenants is Essential!
With either type of insurance, you will have coverage for your belongings and liability at all times. You are covered if you lose your baggage or if you leave a candle unattended, causing a fire in a hotel room. The cost of coverage will depend on the particulars of your policy. Some losses will be fully covered, while others may be partially covered. Subject to your policy limits and coverage, you may be responsible to pay for your deductible if you file a claim. Hence, it is important that you choose the best insurance coverage for you, the coverage that will meet your needs and allows you to sleep worry free from the unexpected events of life.
If you have any questions about Tenant Insurance or Insurance in general, please feel free to contact me.
Sunil Arora (Sunny), MBA, RIBO, CAIB