What Is Tenant Insurance?
Tenant insurance is a specific type of coverage for renters or tenants. It provides you with protection for your personal belongings. You have personal liability coverage if you cause injury to another party. If your unit becomes uninhabitable for any reason, you will have and additional living expenses to help cover the costs of staying in a hotel.
You have protection against common risks. They include theft, fire, smoke, windstorm and hail, vandalism, and some water damage. If your items are damaged because of these threats, you can be financially compensated to replace them by filing a claim. Keep in mind, the landlord will not cover you and renters insurance is required.
How Does Tenant Insurance Work?
Tenant insurance works very similar to other types of insurance. The main difference is that it is more focused on the personal belongings of renters and not the building or property.
Most policies include $1 million in liability and $25,000 for contents. You also have the option to increase your limits and add additional protection.
What Does Tenant Insurance Cover?
A tenant insurance policy provides you with three main types of protection as well as endorsements to boost your protection :
- Personal contents : This protects against loss or damage to your belongings.
- Liability : This protects you against injury and property damage claims you cause accidentally. Legal defense expenses may also be part of the policy.
- Additional living expenses : Get compensation for additional living expenses if your apartment is uninhabitable from an insurable loss.
- Optional coverage : You can add extra coverage to your policy for an additional premium. Add-ons includes increased liability, earthquake, water damage protection and more. You can also add more contents insurance for high value items.
What Does Tenant Insurance Not Cover?
Tenant insurance does not cover all perils. Certain risks are not covered. This includes water damage from floods and sewer backup. It does not cover earthquakes, landslides, and other hazards. You can add extra coverage to insure against these risks.