What is Tenants Insurance, and Why is it Important to Have?

A Closer Look at Tenant Insurance and Its Importance

What is tenant insurance and is it important? If you want an answer to this question then read on since this is the main topic we will be covering in the following sections. Our main aim will be to examine the importance of this type of insurance and type of coverage you can get.

Tenant Insurance and Its Importance

The main advantage of tenants insurance is that it provides required protection for all your content in case the contents get damaged by an incidence that has been insured. 
This type of insurance also provides coverage for damages occurring to an apartment that you are staying in or if anyone suffers an injury because of you.

The Importance of Tenant Insurance

  • Required Coverage 
  • Liability Coverage 
  • Additional Living Expenditures
tenants insuranceRequired Coverage: This type of insurance gains importance from the fact that it provides necessary coverage for all of your content. As for instance, if there is a fire in the apartment you are staying in and everything gets burned then this insurance will cover the losses.
Liability Coverage: Another good thing about tenant insurance is that you get liability insurance for any kind of eventuality. As for instance, if there is a kitchen fire and a part of the kitchen gets burned then it is likely that the landlord would be suing you for damages. In such situation, liability coverage ensures that you are fully protected in such situation.
Additional Living Expenditures: Sometimes, it may become necessary to evacuate the house for a short duration, such as during a flood or when there is a fire in the nearby apartment. In such situation, you will get coverage for expenditure that is to be made on making alternative living arrangement until the time this problem gets resolved.
Is it Possible to Save Money While Having Tenants Insurance?
Yes, there are certain discounts that you can avail and make considerable savings on insurance you take. 
As for example, you can get non-smoker discount, age discount, alarm discount, fire resistance building discount and similar other discounts and reduce the amount you have to pay for your insurance.

What is the Difference Between Landlord and Tenant Insurance?

Both are quite different due to the fact that landlord's insurance is meant to provide coverage for only the property, not your belongings. On the other hand, tenants insuranceis meant to cover your things from problems such as damage, theft or destruction.

What are the Main Factors Upon Which Premium Amount is Based?

There are several factors which decide how much premium you will have to pay. These factors include:
  • Kind of package you are interested in
  • Contents which are to be included in the coverage
  • Location where the home is located
  • Availability of fire protection in the house
  • Your insurance history

The Bottom Line

As we can see, there are several benefits of taking a tenant insurance and this type of insurance provides needed protection for your belongings as well as for covers other eventualities that you may during your stay at a rented home.