Renters insurance, contents insurance, tenants insurance... They all mean the same thing.
The bottom line is if you fit into one of these categories. You need to take a serious look at making sure you have this coverage to protect your financial and personal interests.
Many people feel insurance is expensive, especially when they think about auto or home insurance. However, tenant insurance is probably the least expensive type of insurance you can purchase. Where else can you purchase up to $1,000,000 coverage for less than $1 per day?
It would be hard to reckon with yourself, should you have any type of claim and neglect it to have this type of insurance at such a low cost.
What does tenants insurance cover:
- Additional living expenses
- Various insured perils
1. Contents is the most obvious
This is your clothes, furniture, stereo, TV, shoes, or jewellery. It is all the stuff that you have collected over the years. Once you start to have a serious look at the total cost of what you have collected, you will be surprised at the amount of money everything is worth it.
How much would you need if you came home one day and everything was burnt down or stolen? Do you have the funds available to replace all those items?
If not, you should consider transferring that financial risk to the insurance company for less than $1 per day!
What about when you travel or if you have some of your personal belongings in your vehicle, and they are stolen? Renters insurance will cover up to 10% of your content limit outside of the home. As a matter of fact, anywhere in the world.
For example, if you have $50,000 worth of coverage for your contents, you would be entitled to $5,000 worth of coverage outside of your home anywhere in the world.
Most policies now are considered comprehensive policies or all risk policies. That means that the insurance company will not take depreciation into account in the event of a claim for your personal belongings.
So you bought a TV a few years ago for $1,000. That TV was destroyed in a fire. The insurance company would allow you to go and get the same TV or like-kind model, even though that same TV may have gone up in price to, let's say $1,200.
2. Additional living expenses
If you've watched the local news the past few years, you've probably noticed that many people are complaining about loss of use of their apartment. For example, some of them had to leave their apartment due to some problems within the building, whether there be fire, or water, or some other safety concern.
One of the main reasons for the complaints is because many don't have a proper place to go while their premises is under some sort of repair. However, if you have a tenant insurance policy, there is a provision in the policy that allows you to stay in a hotel or some other accommodation.
The insurance company will help you to pay for the extra expenses. For example, you normally spend $2,000 for your living expenses. However, because you are now in a hotel, the costs are $3,000. The insurance company will pay the additional expense, which is $1,000.
This one can sometimes be the most devastating financially, should you get sued for a liability claim, and you don't have adequate insurance.
Many landlords right now are at the point where you cannot get a rental unit unless you can verify that you have adequate liability insurance on your rental unit.The liability amount is usually $1,000,000.
This will protect you, should you have a fire that unfortunately spreads out into the hallway or to a unit next door. The damage could be $30,000, $50,000, or even more. How will this be paid?
Thankfully, you are wise enough to purchase inexpensive contents insurance, and the insurance company will be the one that pays that bill!
4. Various perils
The policy will typically cover you for the fire, lightning, explosion. You also have coverage for water damage, theft, and vandalism. There is also added coverage, hail damage, and sewer backup, which is a needed cover, even if you find yourself living on the 10th floor.
Each unit has a toilet, and the toilet is somehow connected to the sewer system. Should the toilet overflow or backup, that damage is covered by the wording in the policy that pertains to sewer backup. So that coverage is needed coverage on your policy.
Tenants insurance is probably the least expensive type of insurance one can have today. The benefits far outweigh the cost, considering what could happen.
However, even today the statistics show that more than half of the renters today do not carry any insurance on their apartment or their personal belongings.
Call your local broker and get expert advice on how to protect your personal belongings and your family from potential financial ruin.
We are Bethel Insurance Brokers, a dynamic and progressive insurance office that is dedicated to the customer experience and to protect our clients in the event of a claim.
Call us today and get your quote at 905-683-2323.