Unless you're living in an empty apartment and wearing the same outfit to work every day, you probably could benefit from Tenants insurance. After all, clothes, furniture, stereos and TVs all cost money.
You might also hurt someone accidentally while riding your bike, say or playing golf. Tenants policies cover all this — and more — for surprisingly little. In fact, the average policy only costs about $12 per month. You probably spend more than that on coffee.
Why do I need this?
Similar to a condo owners policy, a tenants policy is basically three different coverages rolled into one:
- Liability pays others injuries sustained in your unit, or by your actions.
- Personal Property pays you for damage or loss of belongings inside your apartment
- Loss of Use pays you for temporary living expenses if your apartment can't be lived in due to a covered loss.
These are the different general types of coverage available in a Tenants policy:
Coverage C covers your stuff: appliances, clothing, jewelry, cameras, furnishings, etc. If it's not built-in, this part protects it. If you've got neat specialty items, you can schedule them for additional coverage.
- Coverage D covers living expenses that occur when you can't live in your apartment due to covered damage.
- Coverage E covers legal liability for injury to others for you and your immediate family, as long as they live at the covered address, up to the limits of the policy.
Why it's needed
Trust us. You're not covered by your Landlord's policy.
- Landlords are not responsible for your belongings
- Landlords are usually not obligated to reimburse/replace damaged or stolen items or cover tenants' liability-related lawsuits
- No matter how responsible you are, others in the building may not be. Overflows from sinks and tubs, or fire and smoke can easily cost you money.
- Your Landlord's policy doesn't cover your living expenses if your unit is so damaged you need to move out and look for a new place.
- Your Landlord's policy doesn't cover liability for your actions, or people getting hurt in your unit.
If you qualify for some (or all) of these discounts, you could save even more:*
- Employer group discounts
- Multi-policy discount (having both your vehicle and your home with Electric Insurance Company)
- Claims-free years discount
- Length of tenure with Electric Insurance Company discount
- Fire alarm discount
- Sprinkler discount
- Burglar alarm discount
* Discount and credit availability vary by state.
Learn more about the definitions of these terms in the Glossary.