Insurance for Tenants

As a tenant, why should I get Insurance? Will the landlord’s policy provide enough insurance?

Tenant insurance (also known as renter’s insurance) is essential for every resident—and is a requirement of your lease agreement. Many first-time renters mistakenly assume their landlord’s insurance will protect their belongings, but it does not cover personal property or tenant-caused damage. Tenant insurance safeguards your valuables in the event of theft, fire, or other covered losses, provides personal liability protection if you accidentally cause damage (such as a fire or burst pipe), and offers coverage if someone is injured in your rental home due to tenant negligence. It can even help pay for temporary accommodations, such as hotel stays, if you must relocate after an insured loss. Investing in tenant insurance is a MUST when it comes to ensuring peace of mind and financial protection throughout your tenancy.

I have roommates. Can we get insurance together or do we have to have separate policies?

Some insurance companies will allow individuals to purchase tenant insurance jointly; however, there are some disadvantages to this approach. In order to ensure expectations are met between all tenants, it is good to keep a record of each tenant’s valuables and their worth and accordingly, an appropriate ratio of sharing the cost of the insurance. Also, roommates should discuss together what would happen if one of the tenants moved out.

Alternatively, insurance companies can also provide separate policies, which can make things much simpler if a roommate decides to leave.