Tenant insurance is a policy that a tenant holds whenever they are renting a property.
Many landlords require that their tenants have insurance because it protects them, makes their building insurance policy cheaper, and ensures their renters have a place to go if there was a large problem with the property.
Usually, landlords want to see a minimum of $2 million for the liability insurance portion. These policies also cover the contents of a rental unit and it will usually put the tenants up if they had to move out because of a flood, fire, or similar issue.
As a tenant, you want insurance for the peace of mind it provides. For approximately $25 to $40 a month, you can be sure that your belongings are protected.
Insurance is one of those things that we hope we never have to use (and most of us won’t), so you might feel like you’re “throwing away” your money. But there are countless stories of renters whose apartments had a fire or other catastrophic event, leaving them out on the street with no belongings, nowhere to go, and no compensation. They literally have to start from zero.
If you’re worried about the price of insurance, simply adjust your rental budget to accommodate the monthly fee. In a worst-case scenario, you’ll be happy you did.
Have more questions about tenant insurance or property insurance in general? We’re experts on the topic! Reach out and we’ll have your questions answered in no time.