Tenant vs Landlord – What is excluded from tenant insurance
Having insurance, even when renting, is important. You may be thinking that landlords have insurance on the building so you don’t really need any insurance because if anything happened, you would be covered. The issue, though, is that your landlord’s insurance may not be enough to cover your personal belongings – you may not even be covered if something happens. Here’s what you need to know about tenant insurance.
What is landlord insurance?
When a person, or company, buys a home for rental they will be required to have insurance on the property. This insurance protects the landlord in the event of fire, theft, damage, vandalism and other various events that can happen.
In short, it will insure the physical building and will protect the owner’s investment. In some cases, if the home is rented to you furnished, the furnishings may be included in the insurance, but the renter’s belongings will not be included.
What does landlord insurance not cover?
When it comes to your personal belongings, your landlord’s insurance will not provide any coverage for you. If something happens to the property, like fire or flood damage, your belongings will not be replaced or covered without your own insurance policy.
When do you need tenant insurance?
If you are currently renting, or think you’re going to be soon, you will want to look into tenant insurance. Even if you don’t think you have a lot of valuables in your home, take a moment to think about what it might cost to replace them. All of your clothes, electronics, personal belongings would need to be replaced in the event of a fire or other serious peril. Tenant insurance will cover this cost so you can replace your belongings.
How much insurance do you need?
It can be hard to go around your home and add up the cost of all of your belongings – how much did it really cost to accumulate all of these items? Over time, it doesn’t seem like you’re spending too much money but over years of building a home you will have accumulated a lot and replacing it all at once may be very costly.
When you’re speaking with your insurance agent, they will be able to give you a better idea of how much insurance you will need for your home and the amount it may take to recover your belongings. You don’t need to give them an exact dollar amount, but an estimate will be helpful so you are not over or under insured.
Insurance with liability
Your landlord’s insurance will probably have some personal liability included, which is needed if someone gets hurt while on the property.
As a tenant, you may decide that you also want to have some personal liability insurance. This can be of use if someone is visiting you and gets hurt while in your home. The landlord’s liability may cover some of the liability but not all of it, and you could be held personally responsible for anything not covered. For this reason, having your own liability insurance can be a great safety net.
Contact ICD Insurance today
If you are a renter, it is important that you have sufficient insurance to protect against loss and personal liability. If you would like to explore your options, contact us today to speak to a broker.