Having tenant liability insurance may seem like an unnecessary expense. After all, you don’t own the property and are already paying rent to live there. Your landlord’s insurance policy covers the property, you have never damaged any previous rentals and your personal belongings aren’t worth that much anyway.
However, there are definite benefits to taking out renters’ insurance, regardless of whether you’re renting an apartment, duplex, or house. So, we’ve put together a list of six reasons why it is important to purchase a suitable insurance policy.
6 Reasons to Have Tenant Liability Insurance
Renters insurance gives you as the tenant, the peace of mind that should something happen to your personal belongings, you’ll be covered for the cost of repairs or replacements. Depending upon your chosen policy, you may also have coverage for accidental damage you cause at your rental and possibly even for accidents that you have been involved in resulting in bodily injury or property damage when you are not at home.
Here are six reasons why you should consider obtaining tenant liability insurance (dependent upon your chosen policy) are:
- Your personal belongings, furniture and appliances are likely worth more than you realise. Can you afford to replace them all or even some should a fire or storm damage occur? Having renters’ insurance gives you peace of mind in knowing that should something happen, you will not be hugely out of pocket.
- Theft and malicious damage of personal belongings can be devastating. Having insurance cover assists with repairs or replacements, as well as reduces financial and emotional stress at a challenging time.
- Renters’ insurance is relatively affordable. This is especially when you consider that should something happen, you are more likely to be out of pocket when personally replacing or repairing an item. Your policy cost will depend upon your excess amount, chosen coverage and where you are living, so shop around to find the best deals.
- A landlord may require you to obtain insurance, with this written into the tenancy agreement. They may also highly recommend you take out a policy and share with you the limits of their landlord’s insurance. You could even try negotiating a rent reduction with your landlord for having tenant liability insurance. That’s because it can offer some benefits to your landlord such as reducing the likelihood of liability claims should fire or other damages occur during the tenancy.
- Your policy may provide liability coverage. This gives you cover should someone become injured while at the rental property, be it your guests or tradespeople. It is likely to provide coverage for any expenses relating to legal costs, judgements, and other expenses. It may also provide liability coverage for you when you are not at the rental too.
- Your belongings are covered even when you are not home. If you head off on vacation and something happens when you are not there, it’s no problem. You may even find your policy covers the belongings you take with you, should they become lost or stolen while on vacation.
Having shared these six benefits with you, we’re certain you’ll agree that the answer as to whether you should have tenant liability insurance is a resounding YES!