Tenant Insurance is a safeguard for you and your stuff. It protects your personal belongings from any loss that could occur due to fire, burglary, vandalism, and water damage, things like, burst pipes or over flowing toilets. The insurance world refers to these bad things as perils. Most policies also cover liability meaning if you are sued for someone slipping in your home or for hitting someone with a ball on a beach, this coverage will cover legal fees and medical fees for the persons recovery.
Most people reason that they don't need tenant insurance of those who don't purchase insurance:
Many individuals claim that there home as good security
Do you believe that your landlords insurance covers your property. This myth is false as the landlords policy only covers the building and the items they own.
Do you feel insurance is too expensive?
Do think that you don't have enough items to insure?
Or do you just not understand what tenant insurance is and how it works?
Our FAQ section looks at these in detail and hopes to clear up some of this information
Most people understand that thei r belongings in there home are covered under a tenant policy in the event a loss occurs. But there are a few important items that people are often surprised to learn are covered.
Property in your Car: The first is belongings in your car many believe that there auto insurance policy covers these belongings. However it is actually your tenant coverage that insurers the items that are in your car. For example if someone breaks into your car and steals your laptop and jacket your tenant insurance policy will cover these items. Your auto policy still covers damage you do to your car and others vehicles, and any liability arising from these collisions, usually called comprehensive, collision, & liability coverage.
Liability Coverage: Your policy covers you in the event you are sued. The insurance company will provide you with legal council and defend you, if you are found negligent, meaning it was by accident but you where at fault, they will most likely cover this loss.
This also means that you are covered both in the event you cause a pipe to burst and are found liable for the damage. This coverage also will cover you in the event you are surfing in long beach and unintentionally break someones arm with your surf board. The insurance coverage will provide you with legal services and the medical coverage for the person needing assistance.
If you through a party and your friend slips on spilled beer breaking his leg your coverage will cover these costs if he were to sue you, the liability will cover medical and legal fees. Some policy's allow for situations where medical costs are covered without a deductible when medical costs are less than $1,000 check your policy to see if this applies to you. However, if at the same party you are hosting and you allow your friend to drive home intoxicated the coverage will not cover you. Always remember friends don't let friends drive while drinking.
Your policy will cover your family, including your children, your parents, and siblings. However, the policy does not cover roommates, this means that they have to acquire their own policy unless they are your family or legally married to you.
Your landlord’s insurance does not cover your items only the building and furniture that they own, but it doesn’t cover your items. We also advise checking your parent’s coverage some policies allow you to stay in residence while you attend school, but not all coverage is sufficient to cover your stuff. It is important to note that most parental coverage only covers up to $10,000. In the case of a loss this will also effect there record of insurance. depending on your parents stance we advise potentially getting your own policy.
The premium is the amount you pay for the policy, it is payment for the agreement for the insurance policy to cover you in the case of loss. it is similar to the purchase price when you buy a laptop. This also means that the insurance company has the obligation to pay you in the event of loss.
It is the amount that you pay when you have a loss, yes, this sounds like you are paying twice. However, if for example your dorm room is destroyed, and you lose all your belongings worth $15,000, depending on your policy, the insurer will cover $14,500 and you would have to pay $500 as your portion of the loss.
Deductibles often range in value from $250, $500, $1000 up to $5000. A common trend with deductibles is the higher the deductible the lower your premium.
Why is a deductible necessary?
The deductible is put in place to keep premiums lower, the reason behind a deductible is to reduce what the insurance industry calls moral hazard. This means that the insurer who is covering your claim wants to reduce falsified claims, by making the insured pay a portion of the claim they are reducing the chance that they caused the claim fraudulently.
The truth about insurance is sometimes there are limits and exclusions, this means that some items like your inherited Grand-Fathers Rolex may not be covered under a standard policy or in other cases jewelry may be limited to $1500 in total to replace all items. In the case of the Rolex if its value is $25,000 a standard policy would only cover $1,500 in this case you will want to purchase additional coverage (called an endorsement) for these special items. Examples of such items that may not be included are Jewelry, art, or collectables (coin collections, stamp collection, or card collection) these items would only be covered up to the $1,500 limit unless additional coverage is purchased.
Please note that any and all information is not legal advice, and may contain errors, This information and website is primarily for educational purposes and was designed to be used as an educational tool.
