6 Misconceptions About Tenant Insurance
With Danielle Tkachyk, of Savante Insurance Inc
Tenant insurance typically is not high on the list of priorities and you are not legally required to have it. Here are some of the most common misconceptions about tenant insurance:
Myth 1: I am covered by my landlord’s policy.
This is, perhaps, the most held misconception about tenant insurance. The landlord’s policy covers damage to the building — not tenants’ personal possessions.
Myth 2: I do not need tenant insurance because I do not have much stuff.
Most people do not realize the value of their belongings…the cost to replace items adds up quickly. Tenant policies cost a few hundred dollars per year. When compared to the tens of thousands it takes to replace your contents, it really does provide great value.
Myth 3: I already have basic coverage. I do not need to pay a premium.
Some tenants do have insurance — but enough? If $10,000 sounds like a sufficient limit, consider how much you pay for a pair of jeans and how many pairs of jeans you currently own. That $10,000 will not last long if you were to lose everything in a fire.
Myth 4: I am just a renter. Damage to the unit is not my responsibility.
Another common misconception is tenants are not responsible for damage to the unit or unintentional harm to someone who visits your home. If you were to accidentally cause major damage to your unit, you do have a responsibility to the landlord.
Myth 5: If I am forced to move out temporarily, my landlord will reimburse me.
Contents insurance will cover the cost of replacing or repairing possessions. But if you are displaced from your home your landlord is not responsible for covering the additional cost of a temporary location.
Myth 6: It is not going to happen to me.
No one thinks it is going to happen to them — until it does. Where would you go? Could you afford to live in a hotel or a temporary furnished rental suite for several months? Thinking about it from a personal perspective can make you realize how vitally important it is that your insurance provides additional living expense.
Talk with a Savante team member to customize the right policy for your needs.