There are many circumstances where you may live in a building that you do not own. In these spaces you will have your belongings and you will interact with others.
You need to protect yourself financially from events that can occur in your new residence. This is when tenant’s insurance becomes part of your financial planning. Tenant’s insurance may be required by your lease. If not, the need to protect yourself and your property from loss remains.
What is covered?
As with any insurance product there are different levels of protection provided based on the form that is used for your policy. The standard ISO Tenant’s policy is a named peril policy and offers property coverage for only those perils listed in the policy. The property covered is your personal property. There is no coverage for the building itself.
Companies may offer other products that have expanded coverages, but in the world of “only pay for what you need” this may not be a request that you know is needed. Coverage for your property is actual cash value, so that means the original values are lowered based on depreciation. Again, there are enhancement forms available that can add replacement cost to your policy.
As with all personal lines property programs there are sub limits on items such as electronics, jewelry, firearms, and cash. This can be an issue if you are downsizing and have accumulated items that may exceed the limited base coverage. You can obtain expanded coverage as long as you make sure to ask the right questions about the coverage forms.
Many Tenants may also have a self-storage unit to accommodate those things that will not fit in the apartment. The base Tenant’s forms offer 10% of your contents coverage or $1,000 whichever is greater. You need to know the values in your storage unit to know if you need to ask for a higher limit.
Tenant’s policies include liability coverage for property damage or bodily injury from an event that is covered by your policy. If you host visitors in your apartment or have any publicly accessible areas associated with your apartment this is a coverage you need to have in place.
Medical payments coverage is also provided in the event another party suffers an injury that would be covered by your policy.
Different companies offer different base liability limits. When looking at different policies, compare the limits provided. If you have the need for higher liability limits a personal umbrella or excess liability policy can be added to your program.
Savings Opportunities
You should ask what discounts can apply to your Tenants’ insurance. Adding auto insurance to the program may generate a multi-policy discount. Good claims history, and safety features of the apartment building such as sprinkler systems, fire, and burglar alarms and back up power generators can also earn a discount. You need to identify these when you are shopping for coverage as they may not automatically be applied.
The Driehaus Difference
If you are shopping online or looking to “pay for what you need” you need to be an informed purchaser of insurance. If you do not know the differences between named perils policies and open peril policies, you are at a disadvantage in shopping. Valuation clauses such as Actual Cash Value and Replacement Cost may not be something you are looking for within the proposal you are given. Did you consider the sub limits for certain types of property?
We understand all of these differences, and we will work with you to get you the coverage that fits your needs. We are focused on making sure your insurance program fits you. We know that insurance is not a one size fits all product. Call us at 513-977-6860 or reach out to us on the internet at www.driehausins.com
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