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10 Reasons Why You Should Have Tenant Insurance

Posted by  on 2021-09-01  10:00:20 AM
Why should you have tenant insurance?

Even though tenant insurance in Halton isn’t mandatory, many renters don’t prioritize getting it when they rent an apartment, condominium, or house.

Why is this so? Well, the philosophy behind renting is that you don’t own the property, so why bother getting insurance?

However, what about your personal belongings? This could be anything from furniture, beds, pots, pans, electronics, and even exercise equipment.

Ask yourself: do you have an insurance policy for your belongings while living at your rental? If you answered no, then this is where tenant insurance comes in and does its job to protect you in emergency situations.

Tenant insurance, also known as renter’s or content insurance, provides protection for all renters’ personal property, liability, and additional costs in the event of an accidental claim.

Keep in mind that tenant insurance does not cover the rental space you are living in. Your landlord or owner of the property has their personal home insurance, and that doesn’t include your personal belongings or provide you with liability.

If you ever had doubts or questions about this type of coverage, then here are 10 reasons why you really need tenant insurance in Halton even if you think you don’t.

1. Water damage

Bad plumbing could cause water damage in your apartment, condo, or house.

Let’s say a pipe bursts, or a clogged toilet overflows the bathroom floor while you’re at work.

When you come home, the floors are drenched with water and some of the furniture made out of leather upholstery has been ruined. In this case, your tenant insurance will pay to repair your furniture.

2. Causing accidental personal injury

While visiting your apartment for lunch, your aunt accidentally slips in the foyer of your building and breaks her leg.

She requires an ambulance to take her to the hospital and stays overnight after her leg gets a cast. Thankfully, you won’t have to pay for her injuries because your tenant insurance will cover your liability.

In typical cases, liability coverage in tenant insurance starts at $1 million. The minimum to purchase liability coverage under tenant insurance starts at $30,000.

3. Fire damage

If you live in a rental property where you share the space with other roommates, accidental fires are more likely to happen due to, for example, people burning their food while cooking or falling asleep with a lit cigarette.

Even if your actual unit or room didn’t get burned, if your clothes or bed got damaged by smoke, your tenant insurance policy can compensate you and cover the cost of temporary accommodations (such as a hotel) while the damage at your rental is being repaired.

4. Theft

If you own any electronics like computers and tablets, the documents, data, photos, videos, and files they contain are irreplaceable.

If your computer gets stolen during a break-in, your tenant insurance provides a standard payout, which is equivalent to the value of the goods. This is called a replacement value.

For example, if your laptop costs $1000, and it gets stolen from your apartment, then your renter’s insurance will compensate you up to $1000 for the laptop. Each policy will have special limits for each type of item. For example, the policy limit of coverage for your laptop might be different from your jewelry. Make sure to review the coverages with your broker.

5. Protection of personal belongings away from home

There is a misconception that tenant insurance only covers your personal belongings when they are in your apartment or house. However, did you know that tenant insurance also covers your possessions while you’re away from home?

For instance, let’s say someone accidentally spills coffee on your laptop while you’re sitting at your local coffee shop. Is your laptop a lost cause?

Nope, your tenant insurance policy has got you covered. Even though the accident happened while you were away from home, since your laptop is listed as part of your personal belongings in your renters insurance policy, then it is insured at all times.

6. Causing accidental personal damage

Tenant insurance also protects you from having to pay out-of-pocket expenses.

If you accidentally damage someone else’s property in the apartment or house you live in, your policy will cover the cost of repairing the damages and liability costs, which includes legal fees for hiring a defense lawyer in the event the other party decides to file a lawsuit against you.

A standard tenant insurance policy covers up to $1 million in liability coverage.

7. Natural disasters

Natural disasters such as tornadoes, hurricanes, earthquakes, or windstorms can cause substantial damage to your personal belongings in your apartment building or rental home.

Your tenant insurance can pay you for your losses and cover the cost for a temporary place to stay while your apartment is being repaired.

8. Voluntary medical payments

In the event a visitor at your apartment accidentally gets injured, having tenant insurance won’t deem you liable.

For example, while your mother is visiting, she has an allergic reaction to a dish you both cooked together. Your tenant insurance can cover the medical costs if she has to stay overnight at the hospital or buy medication or antibiotics for treatment.

9. It’s affordable

Generally, you should get tenant insurance because it will protect you from paying for unexpected damages to you, your property or others without costing you an arm and a leg.

Affordable rates usually start at $25–$55 per month.

Moreover, if you have car insurance, many insurance companies are willing to offer you a package deal if you agree to bundle your car and tenant insurance together. Talk to your insurance broker about auto, health, and tenant insurance bundles that can save you money in the long run.

10. Get peace of mind

You can’t put a price on peace of mind, especially as a renter.

You’ll sleep better at night knowing that your belongings are protected and that you’re not responsible for having to pay out-of-pocket fees if you get involved in an incident causing injury or damage to another party.

Having tenant insurance while renting gives you stability, as you know that your policy will be there to help you when something happens. You’re only one call away from your insurance broker if you need to make a claim.

Now you know the 10 most important reasons why you need to get tenant insurance! We hope that we’ve helped. To learn more about tenant insurance in Halton, call Goodison Insurance toll-free at 1-800-403-7703 or contact us here.

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