- Insurance

Tenants Insurance – Do I Need It?

People usually don’t think about getting a tenants insurance policy until something actually happens, and by then it would have been too late. Since tenants know that their building is covered by an insurance policy under the landlord’s name, they don’t sometimes bother to get a renters insurance policy or a tenants content insurance policy. This is wrong though because your landlord’s policy does not actually give you coverage when you are inside your unit. Rather, your landlord is just concerned about the general welfare of his property, while your insurance deals with whatever you have and whatever happens inside your unit. For instance, an accident that happens in the walkways of your building will be covered by your landlord’s insurance policy. However, accidents that happen within the confines of your unit will be your responsibility.

What is Tenants Insurance?

Still, getting tenants insurance doesn’t mean that you’re getting ready for mishaps to happen. But at the very least though, having tenants insurance will ensure that you have enough coverage to take care of anything that may happen. Aside from handling liabilities for injuries, you can also protect your belongings when you get contents insurance, although this also extends to belongings outside your unit. For instance, you were getting your computer repaired and en route your car got stolen, along with your computer and whatever else items you have from your home. Even when you have a car insurance policy, it will only cover the vehicle itself. Your computer and other belongings? There’s nothing a car insurance policy can do for you. If you have tenants insurance though, your computer and other belongings will be covered, giving you sufficient remuneration to start over and move on from your losses.

Decided on getting Tenants Insurance finally?

Here are some points for you to consider before taking out a tenants insurance policy:

Dollar amount coverage – the dollar amount coverage is the main factor that affects coverage and prices, where a dollar value is not assigned on each of your belongings but rather a fixed amount is appointed for tenants insurance everything you own that you wish to be covered. As with any kind of insurance policy, the wider the coverage of your tenants insurance policy is, the higher the total amount of the policy will be. You may find an online house insurance calculator very useful.

Deductible – when it comes to costs and just how much you are willing to pay with your own money before insurance coverage kicks in, deductibles is the number one factor you have to consider. All that will involve being subjected to the deductible would include everything except for liabilities. Liabilities in tenants insurance involve taking care of whatever charges are incurred for accidents that may have happened within your property or your unit.

Replacement cost – when it’s time for an insurance company to pay you up with reimbursements, how much they actually pay you is determined by some factors. For instance, basic tenants insurance policy will pay you the actual cash value or the value of whatever you lost at the time of loss. If you would rather take advantage of replacement costs though, then you will be given an actual replacement for the item. Opting for the replacement cost more or less will have you paying for a higher premium but since you will get the same item you lost, the price difference may be a small price to pay.

Previous claims and location – where you are located also factors in how much your insurance policy will be because it is an indicator of risk. And the more you are at risk, the more likely that you will be paying for a higher tenants insurance premium. As an example, consider the level of theft present in your area. If you live in area where thefts are rampant or there have been a lot of previous claims field in that area, that means you are at a high risk of filing for a claim yourself, considerably raising the amount of your tenants insurance premium.

Tenants Insurance Summary

After you’ve taken all things into consideration, you can easily get a tenants policy online as there are a number of insurance companies over the internet that can help you out. All you really have to do anyway is to get a tenants insurance quote so you can compare rates and coverage accordingly. It would surely come in handy to get an insurance policy that would let you save a lot on costs but you should never compromise on the kind of coverage you will be getting. You are taking out a tenants insurance policy, after all, in order to protect you and your property from losses and liabilities. Choosing something less than what you need will not give you the kind of protection you are looking for, defeating the purpose of getting a tenants insurance policy in the first place.