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 30 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. +