I’m sure you have heard of auto insurance, life insurance and home insurance but what is Tenants Insurance, Renters Insurance or Apartment Insurance? If you rent your house, town-home or apartment, we can help you get the Tenants Insurance coverage you need. Tenants Insurance also known as Renters Insurance or Apartment Insurance is available to help you replace your personal possessions after a loss. Renters Insurance pays for costs to help you get back on your feet after a loss due to fire, theft or water damage. If someone else’s property gets damaged or someone gets hurt due to your negligence Tenants Insurance protects you.
Insurance is probably the last thing on your mind when you are planning on renting on a temporary basis. But making sure you have all your contents covered properly is an important thing to think of when renting an apartment, a room in a home or the basement of someone else’s dwelling. We’ve highlighted some things to think about before you move into your rented dwelling.
Is Renters Insurance Mandatory?
The short answer is No. Unlike home insurance, which most mortgage lenders require it, purchasing renters insurance is totally up to you. There are some cases, however, where your landlord may require it as part of your rental agreement. So although you may not require it renters insurance is relatively inexpensive, $18-$24 per month can get you what you need to cover your stuff!
In the event of a claim depending on the type of Renters Insurance policy you purchase, you will either be paid the Guaranteed Replacement Cost on your contents or the Actual Cash Value of your contents. The main difference between the two is a deduction for depreciation. Therefore, you should keep a good eye on the policy offered by your broker. You must have a clear understanding of the terms and conditions before you proceed further in purchasing.
Guaranteed Replacement Cost (GRC) – The cost to replace the property with other property of comparable material and quality used for the same purpose.
Actual Cash Value (ACV) – The cost to replace the property with other property of like kind and quality, less depreciation.
Legal Liability and Personal Liability are the two types of liability coverages provided in a Tenants Insurance Policy. In the case of legal liability, the policy covers any unintentional harm caused by a third party inside your dwelling. You can also protect yourself from charges due to the injury of someone else inside your place. At Guild Insurance Brokers and HMS Insurance agencies, a Renters Insurance or Tenants Insurance Policy provides a $1 million limit.
Why Should I Get Renters Insurance?
3 Good Reasons
Insure Your Belongings
When thinking about tenants insurance and insuring your belongings you might be surprised at how much stuff you actually have. Think about all the clothes, toys, electronics, sporting equipment and other personal items you would need to replace in the event of a fire, theft or water damage. Insurance covers more than just expensive items like appliances, furniture and TV’s.
Many students move away from home for the first time and are not aware that they should have coverage on their personal belongings. Sometimes the perception is that “My landlords insurance company will cover me – I don’t need to insure what little I have – My parents home insurance will cover me”. Your landlord’s insurance will not cover your personal property in any of the above scenarios. Likewise, your landlord’s insurance policy is unlikely to pay for any renovations or modifications you have made. Replacing everything that you own can quickly add up. Insurance will replace or repair pots & pans, dishware, clothes and most other household items. Although you may think that your personal possessions may have very little value, replacing everything would not be cheap. Tenants Insurance will help you rebuild your life after a loss.
To Cope With Your Other Needs After A Loss
Imagine a fire in the building you were renting and you were forced to leave until the damage was repaired. There are a lot of unexpected expenses that come into play when your home is destroyed. Where would you stay? Would you dine out every day? What are the other extra costs that you would incur by not having a place to stay? Additional Living Expense is included in your Tenants Insurance Policy, which pays for any necessary expenses while your building is being repaired. Living expenses such as moving costs, hotel bills and restaurant meals would be included. This coverage is subject to the limits on your Tenants Insurance Policy.
To Protect You In The Event Of A Lawsuit
Accidents happen. Liability coverage is also included which provides coverage if you are negligent and are sued. Tenants are responsible for others who live or visit and the harm they cause to any part of their building. If you leave the stove on or forget to shut off the kitchen taps this can result in a lot of damage to the building and you can be sued for those damages. You may be held responsible for the cost of not only the contents of your own apartment but also to other tenants’ contents. Imagine someone suing you for slipping and falling in your apartment. As a result the cost of the injured person’s medical bills, pain and suffering would be your responsibility. In the event of a lawsuit Tenants Insurance protects you and your family.
A standard Tenants Insurance policy provides coverage, up to $1 million in the event of a successful lawsuit. This type of coverage is called Liability Insurance. The cost to defend the lawsuit is also covered within this limit. At Guild Insurance Brokers and HMS Insurance Agencies we can provide you with $2 million and $5 million Liability Insurance options with your Tenants Insurance Policy.
What determines the cost of tenants insurance?
There are a couple of different factors that play into the cost of your tenants insurance policy. Generally, the main factors behind the cost are:
What is the cost of Tenants Insurance
Tenants insurance policies cost anywhere from $18 – $24 per month, or $216 – $288 per year. Included in that price is contents insurance of $30,000 – $75,000 and $1 million or $2 million of liability insurance. The investment is quite small for the size of the return. Learn more about why you need renters insurance or check out our tenant’s insurance calculator to determine how much contents insurance you need. Once you know your contents insurance limit you can buy online or get a quote online.
Where Do I Buy Tenants Insurance from Guild/HMS Insurance?
As part of our new DIY Insurance buy online platform we have added a convenient way for you to purchase your Tenants Insurance online. By answering a couple of questions and a few easy clicks you can have your new Tenants Insurance policy in your email inbox within minutes. Online, on the phone or even with our new chat bot Edgar our goal is to create an exceptional customer experience every time. We also have 6 offices in and around the city of Brandon Manitoba where our team of brokers are always available to help you with your insurance needs so you can Enjoy The View.
How To Buy a Guild/HMS Tenants Policy
Customize & view your coverage options
Pay & Bind your policy
Download your policy documents instantly