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If you’re planning to rent property, be it a home, condo, or apartment, it’s a good idea to learn about tenant insurance. This type of policy protects the insured’s personal property.
For example, if there’s a fire or a case of theft in your rented unit, your tenant insurance can reimburse the cost of replacing some of your belongings. Tenant insurance also provides you with personal liability coverage, which covers accidental damage to unowned property or injury to others.
Why Do I Need Tenant Insurance?
Renters might think that they don’t need tenant insurance because their landlord already has a policy in place, but a landlord’s property insurance only safeguards the property and doesn’t cover their renter’s personal property. So, if something happens within your rented space, you might not be able to recoup the damages of your belongings without a tenant insurance policy of your own.
Additionally, tenant insurance may include personal liability, a type of coverage that protects you if damage is caused to a neighbour or their property inside your rented space.
Is Tenant Insurance Mandatory?
Tenant insurance isn’t required by law; however, many landlords will ask renters to get it as a prerequisite for a lease. This is a way for them to ensure protection for both of you.
How Does Tenant Insurance Protect Me?
Tenant insurance can safeguard you by offering coverage for your belongings, liability claims, and living expenses, among others. Here are some ways that tenant insurance can protect you:
Personal Belongings
Tenant insurance may protect you financially against insured damage or loss to personal property–such as clothing, furniture, and appliances–in your rental property.
Personal Liability
Personal liability coverage can save you financially in case you accidentally cause damage to another’s property or if someone gets hurt in your rented property.
Additional Living Expenses
In some instances when you’re unable to live in your rental property, tenant insurance can cover additional living expenses like the price of a hotel stay while your rented space is being repaired after an insured damage.
How to Save on Tenant Insurance
There are several ways to save on tenant insurance. The first way is to consult a broker. By speaking to a pro, you can compare different plans from multiple providers to find a plan with a price that works for you.
Another way is to bundle your policy with another. Insurance providers typically offer a discount to customers who have more than one policy, so if you’re already taking out an auto insurance plan, you may want to get a deal that comes with tenant insurance, too.