A guide to tenants insurance

Many people think that if they do not own a property, there is no need for them to take an insurance as it is the landlord’s responsibility. This is, however, not the case because tenants should also take out an insurance to protect their personal property and liability to third parties. Landlords are not responsible for tenants personal losses.

Why take out tenants insurance?

Reasons for taking a tenant insurance This might seem like an unnecessary expense but there are many reasons why you should consider buying it. There are many risks which you can face as a tenant. Risks include break-in and theft of valuable items like jewelleries and other personal effects. If your visitor suffers an injury whilst being at your property, a tenant insurance policy will pay for the legal and medical costs.
What exactly is covered? Your tenants’ policy will replace your personal possessions in the event of theft. This can either be paid as a cash value amount (current market value) or as a replacement cost cover (replaces the item less the agreed excess). The second option is a bit expensive. Liability cover Rent insurance will also provide cover to third parties if they get injured whilst being at your rented property. For example, a visitor can triple over an electric wire and get hurt.The insurance policy will pay for medical expenses as well as any litigation costs. It will also cover third party property damage.

Unlivable premises

Sometimes, the rented property can become unliveable especially when there are repairs and construction work being done on the property. A tenants policy will provide alternative accommodation for a reasonable time period, the maximum being twelve months.
Buying tenants insurance When you decide to buy this type of insurance, make sure that your coverage is adequate. You can do a comprehensive search on the internet where you can also compare quotes. Instead of buying replacement cost coverage which is a bit expensive, it is a good idea to choose the actual cash value option. You can also increase your excess in order to reduce your tenants insurance. There are many service providers offering this type of insurance. You simply need to search online and choose the provider with the best terms and offer.