Many renters believe that they don't need any sort of insurance. In the end, the guy the master of the house has insurance, and that'll cover them in case the place burns down.
But without being insured, renters are taking a huge risk. Here's why every renter must have tenant's insurance.
Right away, let's squash the myth the owner's insurance covers you and your contents inside of a rental. Nothing might be more wrong.
The owner's policy only covers the owner's things. Since accommodations won't have any of the owner's things inside it, the policy just covers the condo itself, and not the tenant's possessions. Should there be a fire, as well as other catastrophic event, the only person getting any compensation is the owner.
It's exactly the same thing if somebody breaks right into a rental and steals something that is one of the tenant. Unless the tenant has tenant's insurance, there is no getting paid for the item from insurance. The renter would just be at a complete loss.
It's cheap, too
Depending on a variety of factors, the price of a house owner to get insurance can go from the few hundred to a couple thousand dollars.
Tenant's insurance is less expensive, because it doesn't cover over a homeowner's policy. Consider it by doing this; if your house burns down, a homeowner's insurance policy will pay out enough to exchange the things inside, plus build the homeowner an equivalent house. Most homeowners will just take the cash and buy a new place, for self-evident reasons.
The tenant's policy just covers the contents indoors. Sure, a renter may have a pretty nice laptop, or perhaps a big TV, or even an expensive assortment of college sports memorabilia, however they are all likely to cost you a whole lot less to exchange than the usual brand new house.
That implies that a tenant's policy will often cost a renter just $100 or $150 per year. That's not much to pay to safeguard all of your worldly possessions.
Say a tenant was smoking in bed, which caused a fireplace. They were able to escape, however the rental house burned down. What goes on then?
The owner's property insurance would cover the harm, so they'd maintain very good condition. But once the owner's home insurer finds out the reality, there is a very real chance they might go after the tenant in court, especially if the apartment had very strict rules about not smoking indoors. Tenant's insurance would protect the renter if something of that nature was deemed to be the tenant's fault.
Tenant's insurance might help protect a renter from other liabilities too. If somebody injured themselves while at your house, tenant's insurance would go ahead and take liability from the renter.
There's another thing tenant's insurance covers, and that is water damage and mold. Damage from overflowing tubs or burst pipes is becoming increasingly more common, especially in giant condo towers. And if it is your tub that overflows, you'll be glad you sprung for the insurance.
Is it worth it?
For the cost, I'd say tenant's insurance is worthwhile. If you're looking to get covered today, visit our renter's insurance page to get quotes and do a price comparison to help you find the cheapest home insurance.