What is tenant insurance?


Personal Finance Insider writes about products, strategies, and tips to help you make informed decisions with your money. We may receive a small commission from our partners, such as American Express, but our reports and recommendations are always independent and objective. The conditions apply to the offers listed on this page. Read our editorial standards.

Renters insurance is a type of home insurance, known as HO-4, that protects tenants’ property against fire, storm, or theft.

Your landlord has insurance that covers the building and structure, but your property inside the rental unit is your responsibility.

What is tenant insurance?

A tenant insurance policy has two main components: personal property coverage and liability coverage. It also offers “loss of use” coverage if your rental becomes unliveable due to damage.

Renters insurance protects your personal property if it is damaged by a covered event called insurance risk. Common insurance risks include fire, smoke, theft and storms. Here is a list of named risks covered by tenant insurance:

  • Fire or lightning
  • Windstorm or hail
  • Explosion
  • Riots
  • Airplane
  • Vehicles
  • Smoke
  • Vandalism
  • Flight
  • Falling objects
  • Weight of ice, snow or sleet
  • Accidental spill or overflow of water or steam
  • Sudden and accidental tearing, cracking, burning or swelling
  • Frozen
  • Sudden and accidental damage due to short circuit
  • Volcanic eruption

Source: Data from Zebra and Lemonade

What does tenant insurance cover?

Yael Wissner-Levy, vice president of communications at Lemonade Insurance, told Insider that tenant insurance covers three things:

  1. Things that happen to your business
  2. The things you are responsible for
  3. Events that require you to vacate your rental

* Available as additional coverage

**Flood insurance is a separate cover

Data Hippopotamus Insurance

The liability protection in your renters’ insurance policy could help protect you if someone sues you for injuries in your rental or if your pet bites someone.

Some tenant insurance policies will cover part of your costs if you have to move temporarily because your apartment has been damaged, this is called loss of use. Basic personal effects are covered, but you may need additional coverage – known as jumpers or endorsements – for specialty items such as wedding rings or other jewelry, cameras, artwork. art, bicycles or musical instruments.

Wissner-Levy noted that as a tenant you are protected from anything that suddenly causes water damage without any previously known issues, such as accidental overflow of water or steam from plumbing, heating systems. , air conditioning or sprinklers. You are also protected if the sprinklers in your apartment go off and soak all your belongings, or if your pipes freeze in the winter and burst.

If you have a pet, you should let your agent know if you have an exotic pet, large dog, or certain breeds to make sure you are covered. There may be limits to liability coverage if your pet attacks or bites a guest. If you fail to disclose breed or your pet is an exotic animal, Renters’ Insurance may deny your claim.

Tenant insurance does not cover roommates

Tenant insurance does not cover your roommate. If you have a roommate, each roommate should have their own policy. Tenant insurance only covers the insured policyholder. It does not extend to other people living in the apartment or house.

How much does tenant insurance cost?

The average cost of tenant insurance is around $ 15 per month, or $ 180 per year. Some factors that go into determining your premium are the amount of coverage you want: where you live, whether you own a pet, and your credit score. If you already have auto insurance, you can get discounts from your provider to bundle your tenants and

car insurance

If you are renting in disaster prone areas – flood zones, hurricanes, tornadoes, forest fires, mudslides, hail and earthquakes – premiums will be increased as they are not included in basic coverage and will need to be premiums. complementary fonts, called a jumper.

How much tenant insurance do I need?

Your renters insurance premium is based on the amount of money it would take to replace your belongings. Renters’ insurance policies cover up to a certain amount, typically around $ 20,000 or $ 30,000 in coverage. Determining the value of your property will help you decide how much coverage to get.

How to take out tenant insurance

Prices for renters insurance may vary from state to state. Where you live will play a big part in your quote and each business will look at this differently.

To be sure that you are getting the best price for your tenant insurance coverage, you will want to shop online and get quotes from several different insurers. Compare quotes and find the most types and limits of coverage. Then look for the lowest premiums that fit your budget.

If you have auto insurance, consider bundling your tenants and auto insurance. See Insider’s Picks for the Best Renters Insurance Companies.


About Author

Leave A Reply