Risk & Business Magazine Miller Insurance Summer 2019 Magazine | Page 30

TENANTS INSURANCE
Tenant’s Insurance:
What It Is And Why You May Need It
W
hen it comes to Tenant’s
Insurance (also called
Contents or Renter’s
Insurance), there are a
lot of misconceptions out
there.
The first one that I hear is “Well, I don’t
have a lot of stuff, so I really don’t think I
need it.”
People usually think about how many big-
ticket items they have—such as jewelry, TVs,
or laptops—when debating whether or not
they need tenant insurance. However, if you
take a quick look around your apartment,
you’ll soon realize that the little things like
clothes, kitchenware, and furniture add up
very quickly. What’s more, tenant insurance
covers more than just your possessions,
with the typical plan covering you for
personal liability of $1 million.
The second one I hear is that the landlord
has insurance.
While this is probably true, your landlord’s
insurance will only protect the building
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itself, any contents the landlord owns and
the landlord’s own personal liability in case
someone is injured on the property. Your
possessions, any liability claims against you
and your expenses should you be forced to
vacate will not be covered by that insurance.
What if you cause damage to your
apartment or apartment complex? Most
people don’t realize that as a tenant, you are
liable—meaning legally responsible—for
any harm you cause to any part of your
building and to others who live or visit
there.
Tenant’s insurance policies can differ
slightly from insurer to insurer, but they
generally include three kinds of coverage:
Personal Liability Coverage, Contents
Coverage and Additional Living Expenses
Coverage.
LIABILITY COVERAGE is comparable to
the liability coverage in a homeowner’s
policy and protects you if you or your guests
cause damage to the building—whether to
your unit or to the whole building. If you
don’t have this protection and are sued for
the repair costs, you could be financially
responsible for the whole bill. This coverage
will also protect you if someone is injured
in your home and sues for damages, which
can and does happen.
CONTENTS COVERAGE allows you to
replace or repair your belongings if they
are lost or damaged due to an insured
peril. You should insure for an amount
representing the replacement cost of all
your belongings.
ADDITIONAL LIVING EXPENSES
COVERAGE pays for a portion of your living
expenses should you need to vacate your
unit due to repairs or other insured risks
such as flood or fire.
Keep in mind that landlords have relatively
few legal obligations to compensate tenants
for damage to, or loss of, their personal
possessions. Tenant’s packages are generally
an inexpensive way to protect both yourself
and your contents. Often you can save
money by bundling your insurance with
your auto insurance company. +