The Different Types of Tenant’s Insurance

If you’re renting a flat or house, you won’t need to go all out and buy buildings insurance, because that falls under the landlord’s responsibilities. However, it’s still a good idea to cover yourself and any items you might own within the property against events beyond your control. This is where tenant’s insurance comes in.

Why do you need tenant’s insurance? 

Tenant’s insurance, also known as renter’s insurance, is designed to cover you in the case of unexpected events such as a break-in or an injury on the property. Your coverage limit – the maximum amount of compensation you are entitled to – will vary depending on which policies you choose.

white plastic house under a red umbrella

What is personal property insurance?

Personal property insurance covers the cost of repairing or replacing your belongings (including clothes, furniture and electronic devices) if they are damaged in situations beyond your control. Examples of such unexpected events include fire, break-ins and sometimes even theft of items outside the house, such as property stolen from your car.

However, coverage limits apply, and depending on your insurance policy, you may not get full compensation if the loss is too high. To decide how much coverage you’ll need when choosing your policy, you should weigh up the value of your property and how much it would cost to replace.

Personal property coverage can also be subject to a deductible, meaning that you’ll have to pay a certain amount towards the repair or replacement of your property before your insurer will help you out.

What is liability insurance?

Liability coverage is designed to protect you if you’re found legally responsible for someone else’s injuries or damage to their property. An example of this would be if you accidentally throw a ball through your neighbour’s window, or if a guest has a bad fall in your apartment; liability insurance will help cover any costs incurred. As above, coverage limits apply.

a child and adults hands holding a wooden house

What is additional living expense insurance?

If your rented home is damaged in a situation beyond your control – for example a fire – and becomes uninhabitable, additional living expense coverage may help. Costs covered may include hotel bills or food shops that amount to more than you would usually spend.

Before choosing your tenant’s insurance policy, it’s always wise to read through the options carefully and work out how much coverage you’ll need. If you do have reason to make an insurance claim, you should get in contact with your agent as soon as possible.

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