Also referred to as renter’s insurance, it helps cover the costs related to replacing or repairing the personal belongings of an individual(s) in the event of an unexpected incident that occurs at a rented property. Such incidents may include fire, flood, etc which can easily destroy the personal belongings of the tenant. The tenant may opt to replace damaged personal belongings by himself. But it is more convenient should such a tenant have an insurance policy to cover such cost.
There are usually three types of insurance coverage for tenants. They include;
- Personal property
- Additional living expenses
- Personal Property Coverage: This kind of coverage will cover the cost of repairing or replacing personal belonging if they are victims of an unexpected incident such as fire. However, such an insurance policy will have coverage limits for property losses. In order to have control over your coverage limits, it is good to create an inventory of your belongings and assess their value. Some coverage can provide actual cash value protection and cover the belonging up to their current market value.
- Additional Expenses Coverage: If the house is damaged by flood and it becomes inhabitable due to the fact that extensive repair work is required, the coverage can help to pay for living expenses that the tenant might incur during the time the house is being repaired such as hotel bills and other accommodative stays. There would also be a maximum coverage limit hence it is a good idea to check such limits with the insurance agent.
- Liability Coverage: Such coverage would cover the cost related to the individual(s) who incur medical expenses as a result of an unexpected injury while at the rental property. This coverage helps cover any accidental damages incurred to someone else’s property.