Most people don’t think they need tenant insurance because they say they don’t have anything worth insuring. After all, you’re not required by law to have it, so why bother? The problem is that most of the time, the reason why we don’t think tenant insurance matters is founded on a misconception, and one that could end up costing you more than you think. Here are six of the most common ones:
Your Landlord’s Policy Will Cover You
This is the most common reason people give for opting out of tenant insurance: if something happens to the building, the building owner will be responsible to keep you whole. However, the hard truth is that the owner’s policy will only cover damage to the building, not your possessions. With proper insurance, your belongings will be insured, but opting out means that anything that needs to be replaced will come at your own expense.
You Just Don’t Have That Much Stuff
Everything you own has a replacement value, whether you realize it or not. Even if you’re a minimalist, the value of your clothes, furniture, electronics, dishes, sheets, sporting goods, and kid’s toys is a lot more than you think. Top all of that off with the cost of purchasing all of these items new at their full retail price, and you’re likely looking at a price tag that’s many times more than the cost of annual tenant insurance.
You Already Have Basic Coverage – Why Pay a Premium?
Some tenants do end up purchasing insurance, but will opt for the lowest cost coverage they can find. These policies are easily available online and usually involve choosing the least amount of coverage that you can get. The problem here is the same: the things you own are worth more than you think, and an estimate won’t be nearly as accurate as when you have a broker working with you to determine what you need to cover.
DID YOU KNOW? We can help provide you with resources to help you calculate how much insurance you actually need if you were to replace or repair all of your possessions. Contact us today to get started!
Renters Aren’t Responsible for Damage to the Unit
It’s easy to think that, since the property you’re living in is not owned by you, you also do not have any responsibility for damage to the unit. Sadly, this isn’t the case. If you do cause major damage to your unit, you are liable to your landlord, and they, along with any other tenants, will be within their rights to pursue legal action. Your damage deposit also isn’t designed to cover this type of damage either.
Your Landlord Will Reimburse You If You Have to Move Out Temporarily
While contents insurance will cover the cost of replacing or fixing things that were broken during a natural disaster, it doesn’t cover any costs you incur while your unit is being fixed. If you’re thinking to move into a hotel or a short-term rental, that cost will come directly out of pocket, unless you have coverage for additional living expenses in your policy.
The Odds Are That You’ll Never Need It…
… and we certainly hope you never do! The reality is that no one ever thinks it will happen to them until it does. If you had lost everything in a disaster, what would you do? Many think that they will just rely on family and friends, but what if they were also affected by what happened? How would you take care of yourself, your family, or your pets?
DID YOU KNOW? If you already have tenants insurance, make sure it has coverage for additional living expenses. This will help cover the cost of staying at a hotel if you should be displaced from your home.
It’s safe to say that as a renter, having tenant insurance is a must, and relying on these misconceptions can end up costing you in the long run. Speak to one of our experienced brokers today to customize the right policy for your needs.