Traditionally people are not interested in tenants insurance coverage. In most cases they are buying it only because they will get a discount on their auto for bundling or because it is required by their landlord.
Tenants insurance is when you are living in home/condo but do not have any ownership of the building. As a tenant you are legally responsible for any damage you cause to any part of your building (property) and for unintentional harm caused to others who live in or visit the property (liability).
It is estimated that almost 90% of tenant policies are undervalued.
Some consumers appear to have no concept of the true value of their belongings. One example is wardrobe – even a basic wardrobe would cost $5,000 - $10,000 to replace.
One of the most important considerations is that without insurance you could be held liable for damage caused to property through your own fault. You could also be sued if a visitor to your residence is injured through your negligence.
Additional Living Expenses which form a part of tenants insurance is also important if your residence becomes inhabitable due to a loss.
Below are a few what if scenarios.
Will my landlords insurance policy cover me?
No. Your landlord’s home insurance policy would provide coverage for damage to the dwelling and the contents of the landlord. Coverage would not extend to cover the contents of a tenant.
I have a roommate with a Tenants policy in force, Do I still need my own?
Yes. Unless your name is specifically listed on the policy, you are related to or in a common law relationship with the roommate it is unlikely that your roommates policy would extend to cover other tenants.
Should I share a policy with my roommate?
This decision is entirely upon the insureds. Here are a few more questions to help you determine if one policy will work.
Things do not work out or one of you moves out early?
You need to get a signed release of interest to remove them from the policy.
We have a claim, the claim settlement is put into everyone’s name.
Other things to consider.
What is my limit, is my roommate under insured. This could affect your settlement along with litigation if you cannot come to an agreement.
If my roommate has a liability claim, will it be held against me as named insured moving forward. The answer is yes, as you were a named insured .
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