Tenant’s Insurance
If you’re a tenant, you need not worry about insuring the physical structure of your home, but you would want to replace your belongings in the event of a disaster. Look below to see the various issues that you should consider in applying for your tennant’s insurance.
- Contents
- Is your limit adequate?
- Remember, it is not what you paid for the item, what you could sell it for, or what you could buy it on sale for – if you needed to replace ALL your belongings tomorrow, what would it cost?
- If so, their possessions will be covered by your personal insurance policy even if they are not living at home. attending a university or college?
- Do you have special contents which require specific insurance?
- Bicycles
- Most policies limit coverage to $500, and the coverage is subject to the policy deductible
- For an additional premium (based on the value) you can increase this limit, and lower or eliminate your deductible
- Jewelry
- Most policies limit coverage to a specific dollar amount (generally between $3,000 and $6,000), and the coverage is subject to the policy deductible
- For an additional premium (based on the value – which must be supported by an appraisal) you can increase this limit, and lower or eliminate your deductible
- Furs
- Coverage limits vary by policy
- Collectibles
- Coverage limits apply, other restrictions may apply
- Do you know what your policy covers?
- Business Contents
- Do you have any property related to a business?
- Did you know that the coverage for this property is generally quite restrictive?
- Additional Living Expenses
- This limit is generally a pre-determined percentage of the contents limit (20%-30%)
- Does your lease require you to continue to pay rent, even if you have to stay elsewhere?
- Could you find somewhere else to live at a similar rent rate as where you are?
- Is the limit enough?
- Bicycles
- Optional Earthquake coverage, which we ALWAYS recommend because:
- February 27, 2010: 8.8 Earthquake in Chile – estimated loss $8-$12 BILLION
- September 4, 2010: 7.0 Earthquake in New Zealand – estimated loss $2-$4.5 BILLION
- Use/Liability coverage – your personal liability policy covers you on and off your premises for your personal negligence; however, it assumes you are simply acting as a homeowner. If you use your home in other capacities, such as the ones below, you may benefit from additional coverage.
- Do you have a home based business?
- Does your Insurer know?
- Do you have clients on the premises?
- You may need a business policy to cover this liability exposure.
- Do you do consulting or internet work?
- You may need a Professional Liability policy in place.
