If your faulty toaster oven starts a fire that damages not only your apartment but also the entire complex, you may have to pay out a lot of money. Similarly, if someone slips and falls in your apartment, you could be held financially responsible for the cost of the injured person’s pain, suffering, and medical bills. Tenant’s insurance covers these costs.
Types of Tenants’ Insurance You Can Buy and What They Cover Each insurance company packages tenants’ insurance products by different names, but they should all include two kinds of coverage – Basic Liability coverage and Contents coverage.
1. Basic Liability coverage protects you if you or your guests cause damage to the building – whether it is your unit or the whole building. If you don’t have this protection and you are sued for the repair costs, you could be financially responsible for the whole bill. This coverage is comparable to the liability coverage in a typical homeowners’ policy. 2. Contents coverage replaces your belongings if they are lost or damaged. You may think you have little value, but you would be very surprised at how much it would cost you to replace everything – all at once. You should ensure for an amount representing the new replacement cost of all your belongings. Coverage is on named peril or an all-risk basis.