A homeowner or landlord’s insurance policy covers the major items such as the physical structure, piping and electrical work and appliances. As a tenant, you need your own tenants insurance policy to cover your personal belongings, as well as any injuries that occur while you are living in the home. This is why most landlords require tenants to have their own insurance.
There are a few key components of a tenants insurance policy you should be aware of.
Covers you for amounts you are legally responsible to pay due to unintentional injury to someone or damage to their property arising from the usage of the home. Take the example of a stove left on too long causing a fire and damaging neighbouring homes. The liability portion of your insurance would pay to repair for the resulting damage. It is quote common to get $2M in coverage, though it can range from $1M to $5M.
This covers the cost to repair or replace the items you own, such as clothing and furniture. Even if you feel that your items are not worth a whole lot, replacing everything at one time could be quite costly. Note that this coverage typically does not include speciality and expensive items, such as bicycles, silverware, furs, fine art etc. You may need to separately itemize such items to make sure they are insured.
Additional living expense
This covers expenses incurred while your apartment is being repaired. These include hotel bills, restaurant meals and moving costs. This coverage pays for unexpected expenses when you cannot live in your apartment due to a covered loss. It is subject to certain limits
Voluntary Medical Expense and property damage
This covers you in case you unintentionally injure someone else, or damage their property. In such cases, you can them for their injuries, even if you are not legally obligated to do so. This payment could help avoid a larger lawsuit since you can make the payment very quickly.
This the amount you will need to pay before your tenants insurance policy responds. For instance, if you had a $5000 claim and your policy has a $1000 deductible, you would pay the first $1000, and then the policy would pay out the remaining $4000. Although a higher deductible reduces your premium, you have to pay more in the event of a claim.
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