What Does Tenant Insurance Cover?

What Does Tenant Insurance Cover?

When it comes to tenant insurance, many people believe that if their landlord has insurance, that they do not need to purchase their own insurance coverage. Unfortunately, this myth couldn’t be further from the truth. If a major disaster or fire damaged your apartment building, the only thing your landlord’s insurance would cover would be their own appliances and the building structure but none of your personal belongings.

If you are wondering what tenant insurance covers, it is probably more than you expect. Tenant insurance covers your belongings and everything you own inside your rental home (furniture, clothing, TV, stereo system, kitchen appliances, sports equipment etc.) Plus, you may be surprised to learn that it also offers additional protection and a number of perks. To find out what exactly tenant insurance covers, keep reading below.

Replacement Costs

Imagine if your refrigerator or freezer broke down and everything inside spoiled. Chances are, you would have lost a significant amount of groceries which is expensive to replace. With tenant insurance, many policies include Replacement Cost Coverage which would cover the cost to reasonably replace the spoiled contents in your broken fridge or freezer.

Additional Living Expense

If your rental unit was seriously damaged and you had to leave while it was being repaired, where would you go? Most tenant insurance policies include Additional Living Expense coverage which will put a roof over your head while you have to vacate your unit. This coverage includes reasonable expenses such as a hotel or short-term apartment rental and the cost of food if it cannot be prepared at your temporary home.

Liability

Many tenant insurance policies include third party liability coverage, which protects you if you are ever legally held responsible for damaging someone else’s property or causing a physical injury. Legal liability coverage will cover items such as your legal fees, lawsuit settlements and other related expenses.  Plus, your liability coverage will protect you when you cause damage when you are outside your apartment.

Whether a friend slips and falls in your kitchen and you need to pay for medical expenses or you accidentally break a valuable item while in someone else’s home, your liability coverage will keep you from having to pay out of pocket. 

Coverage Outside of Your Apartment

A major benefit of tenant insurance is that it protects your belongings inside and outside of your home. For example, if you left your purse in a locker while at your health club, and it was stolen, your tenant insurance may cover the cost to replace your cell phone, or other belongings that were inside.

Another perk of many tenant insurance policies is identity theft coverage. This can reimburse you for costs such as lost wages, having documents certified and mailed, as well as legal fees. This is usually an added feature and this coverage can be bought at an additional cost.

If you are still not sure if tenant insurance is worth it, take a moment and do a quick inventory of each room in your apartment. If you were suddenly faced with having to replace everything, would you financially be able to afford it?

Whether you are a first-time tenant or have been renting a condo you love for many years, tenant insurance will give you peace of mind and protect your belongings. Plus, it comes along with all of those great perks mentioned above!

To learn more about how you can save money on tenant insurance, contact an experienced member of the Bow Valley Insurance team today for a free, no obligation quote.