Tenant’s insurance is important for those who rent an apartment, condo, townhouse or duplex. Tenant’s insurance protects you against any loss or damage to personal property.
When renting, the owner of the building usually has insurance that gives protection to the physical part of the building where you live but the owner’s insurance does not cover your personal property.
Landlords and Tenants Insurance
These days most landlords require tenants to purchase tenants insurance before a lease is signed. Actually, this is a wise thing to do because not only does it give the renter cover and peace of mind but may prevent a lawsuit for both the renter and the landlord and it holds both parties liable for damages that might occur.
But, before signing up for renter’s insurance you need to ask yourself several key questions such as:
- If my belongings were stolen or damaged, how much would it cost to replace them?
- And, if my belongings were stolen or damaged, could I afford to replace them?
- If there were a fire or water damage, how much would it cost to replace my belongings and would I have the funds to do so?
Insuring Personal Property
When thinking of tenants insurance it is important to remember that you don’t want to insure just a few key items because when tragedy occurs, you won’t know what items will be sparred and what items will not. So, it is important to insure all of your property.
Key Points for Tenant’s Insurance
Things to keep in mind when purchasing tenants insurance are:
- the deductible – the higher the deductible the lower the cost of tenants insurance,
- actual cash value – coverage that pays for what the item is worth and
- replacement cost – which is coverage that provides for the actual replacement value of the item – but without no deduction for depreciation.
The replacement cost type of renter’s insurance has an additional premium but many have found that it is well worth the extra expenditure.
There are; however, ways in which you can save on tenants insurance. Discounts can be found if you have the following plus factors:
- Dead bolts on all exterior doors
- Auto insurance with that provider
- Burglar alarms or fire alarms
- Sprinkler systems
- Fire extinguishers
