Why do I need Tenant Insurance?
To Protect Yourself
Do you know that your landlord has no legal responsibility to replace or pay for your personal possessions? If your possessions were damaged or destroyed in a fire or natural disaster, or stolen, replacing them could be costly. Even if you don’t own your home, you still need insurance to protect your possessions and to help meet your obligations to others, including your obligations to the owner of the home you’re renting.
If you’re in your first apartment, you may think you haven’t accumulated anything of real value yet. Not true. A small amount of furniture may not seem worth much, but when you have to replace it, it could be expensive. If you’ve bought a CD player or furniture on credit and it’s destroyed by fire or stolen, you’re still responsible for paying the balance to your creditor, even though you now don’t have the item.
To Fulfill Responsibility to Others
Do you know that you could have a legal responsibility to replace an entire apartment building even though you may be renting only a small part of it? Your stove, for example, could catch fire, leading to damage by smoke, fire and water to the whole building. Or suppose a visitor were to be injured in your apartment and sued you; you’d be responsible for paying any legally awarded settlement. Without liability insurance, you could end up paying for a long, long time!
To Cover Improvements
If you are a tenant, you can choose from a variety of insurance policies that remove much of the worry from renting.
Tenant’s Improvements coverage is an important consideration because policies generally have standard limits that are sometimes not high enough to cover all of the improvements that you may have made to your rented home. Such improvements could include broadloom, built-in cabinets or sound systems. You may need additional coverage.