Tenant Insurance: Tenant insurance is a contents insurance, in that, the building and land are insured under a policy by the building’s owner, however, this will not include the contents of your individual unit. You will want to obtain coverage to ensure you are compensated in the event of a break-in, involving theft of your belongings, as well as, damages caused by a storm or fire. Tenant insurance limits your financial liability in the event a guest is injured or property is damaged.
Landlords are responsible for having insurance in place to protect the building and the land it sits on. Whether you own a rental building or you rent your basement out, makes a difference in the type of coverage you require. Landlord Insurance policies work best when both the insured and the insurer are privy to the correct information.
WHAT YOU GET – coverage for damages to your property that include;
- Walls, floors, heating/cooling systems, fixtures, and any furnishings included in the rental,
- Loss of rental income, if your tenants must leave the rental as a result of the above damages,
- If a tenant or their guests are hurt or suffer damages and sue you, this provides monies to pay for your legal defense expenses
If you are considering renting out any part of your personal dwelling, for any length of time, you must inform your insurance provider before this takes place.
Your personal dwelling policy, in most cases, does not allow for renting out any part of your property. If a tenant were to be the cause of damages, and you had not disclosed this, it could negate your insurance coverage entirely.
It’s Your Stuff – You Want To Protect It!
So many times, during our lives we hear of or attend a fundraiser for a family who has lost everything in a fire. If you rent, you need to be covered. The building’s owner has insurance on the premises, but if there was a fire, and you were to lose everything; you would get compensated, right? No. you would not.
But, for very reasonable premiums you can be protected against footing that bill yourself. Premiums are based on the value of your contents (furniture, clothing, electronics, housewares etc.)
You also are taken care of for the duration of time it takes the dwelling to be ready to live in again, including; hotels, meals, and moving costs.
It provides you with liability coverage if damages to a property or a person occur, that you are the cause of. Your liability without tenant insurance could include; legal costs, pain and suffering, and the expenses of medical needs required.