Sometimes, it takes a drastic event to realize the importance of insurance. Unfortunately, I learned the importance of insurance the hard way. Just two months after graduating college, I naively moved into an apartment without purchasing insurance. Within a week of moving in, I received a call informing me that lightning had struck the building, and the entire place had gone up in flames. Trying to put my life back together without insurance was not a pleasant experience, one that can easily be avoided with a standard tenants policy.
The primary purpose of a tenants policy is to insure your personal property. The policy covers loss or damage to your personal property while at your residence in the event of a covered loss, such as theft, fire or storm. The policy also covers your property when it is away from your home, for example, if your laptop is stolen or damaged due to a covered peril when you take it with you on vacation.
Carefully consider the amount of coverage you need. It can be overwhelming to create a list of every possession you own after a loss. Be prepared by taking inventory of your personal property and the cost of each item.
Tenants insurance provides more than just peace of mind in replacing your possessions; it also provides liability coverage. Don’t overlook this insurance need. If someone is injured while in your home ̶ even if you don’t own the home ̶ you can still be held liable. You may be responsible for medical bills and could be subject to a lawsuit. A tenants policy protects you from the financial consequences of most risks.
Additional Living Expenses
Now, imagine your apartment catches fire and is uninhabitable. Where do you go from there? With a tenants policy, you don’t have to worry about moving in with the in-laws. Your policy can pay for necessary increases in living expenses incurred so that your household can maintain its normal standard of living.
Renters can find additional information at the Ohio Insurance Institute’s website. While it is an Ohio-based organization, the principles discussed apply throughout the United States.