There’s a common misconception floating around that if you’re a renter, you don’t need property insurance. Often times when we advise a client they should have a tenant’s package, a common rebuttal is “I’m not going to bother. My stuff isn’t worth anything.”
The reality is that tenant’s insurance is about more than just covering your stuff. Below you’ll find a few good reasons to purchase tenant’s insurance.
1) Covers your belongings
Tenant’s insurance obviously covers your personal effects. As far as the famous argument “my stuff isn’t worth anything,” if you lost everything in a fire right now, are you in a financial position to replace it all yourself? Think about all your clothing including items like shoes, coats, and hats. Personal accessories like your computer and phone. What about household items? Dishes, kitchen utensils, towels, sheets, blankets. And don’t forget about the fun stuff like sports equipment and your hobbies!
All these things that you use day to day have value and, while their financial value may be individually insignificant, combined it all adds up. Most of us aren’t in a financial position to replace our belongings if we lost it all today. With tenant’s insurance, you can rest easy knowing your belongings are covered.
2) Offers legal protection
Let’s say someone comes into your apartment. They trip over the edge of your area rug, fall and injure themselves. Next thing you know, you’re being slapped with a lawsuit holding you financially responsible for their pain, suffering and any incurred medical costs.
Ultimately, tenants are responsible for any harm that may be caused to anyone visiting their rental unit. If you have a tenant’s package in place, your personal liability coverage would kick in to defend you against this lawsuit. Without this coverage however, it’s up to you to cover these legal costs on your own.
3) Covers additional living expenses
Now let’s pretend there’s been a fire in your rental unit. You’re forced to find housing elsewhere while it’s being repaired. Not to worry though. If you have a tenant’s package you’ve got coverage for these extra living expenses incurred while your apartment is under repair. This would include expenses such as hotel bills, restaurant meals, and any incurred moving costs.
4) It’s inexpensive
Tenant’s packages are relatively inexpensive especially considering the coverage and peace of mind they provide. A typical premium usually sits around $25 per month depending on the location, construction of the dwelling and the required contents limit.
Contact your broker today to find out more about how tenant’s insurance can protect you. It’s a small policy that has a huge impact.