Renters should be aware that they are exposed to certain risks that should be insured. Although insurance may not be strictly required in all instances, it is still highly recommended as there is no way to purchase coverage after an incident has occurred.
In general, tenants insurance policies provide coverage for:
- CONTENTS – Tenants will be provided with coverage to protect the contents in their dwelling and other personal belongings worn or used on- and off-premises up to the stated policy maximum. This policy coverage may or may not be subject to a deductible in the case of a claim. The policy provides “all risks” coverage to protect their personal property against losses such as fire, theft, or water damage. Any claims are likely to be settled on a “replacement cost” basis without deduction for depreciation.
- PERSONAL LIABILITY – If a tenants is found to be responsible for causing damage to the building or another person’s property (for example, if a tenant accidentally started a fire in their apartment) or bodily injury to another person, the policy will respond up to the policy limit (usually $1,000,000 or more) to pay legal expenses and compensatory damages for which they are found to be legally liable.
- ADDITIONAL LIVING EXPENSES – If as a consequence of an insured loss the dwelling is unfit for occupancy or a tenant has to move out while repairs are being made, the policy will pay the increased expenses, up to the policy limit, incurred by the tenant to obtain temporary housing. If a tenant has to move to a hotel for a few days while their dwelling is being repaired, these additional costs would be covered and if required, increased food costs for restaurant meals.
Please call your Marsh's Private Client Services licensed insurance broker at 1 800 265 2196 for a no-obligation quote.