Tenants’ Insurance

What Does Tenants’ Insurance Mean?

Tenant insurance provides coverage for individuals renting a property. This type of insurance can be used to replace personal belongings if they are stolen or damaged. Additionally, tenants’ insurance offers liability coverage to protect the renter in the event they are sued for causing damage while renting the apartment.

Insuranceopedia Explains Tenants’ Insurance

Renters are not covered by their landlord’s homeowners’ insurance policy. In the event of a loss, the landlord’s insurance would cover the landlord’s property, but not the renter’s belongings. As a result, if a fire or burglary occurs, the renter would need to replace any damaged or stolen property out-of-pocket.

Renters can also be sued for their actions. For instance, if they forget to turn off the bathtub faucet and cause a flood in the apartment below, the downstairs tenant could sue the renter. With tenants’ insurance, the renter would be protected in such situations.