Types of Tenants\u2019 Insurance You Can Buy and What They Cover<\/p>\n
Landlords have relatively few legal obligations to compensate tenants for damage to, or loss of, their personal possessions. Tenants, on the other hand, are responsible for the harm they may cause to any part of the building in which they live or to others who live or visit there.<\/strong><\/p>\n Coverages<\/strong><\/p>\n Each insurance company packages tenants\u2019 insurance policies differently or calls the products by different names, but they all (should) include two kinds of coverage \u2013 Basic Liability coverage and Contents coverage.<\/p>\n Basic Liability coverage protects you if you or your guests cause damage to the building<\/strong> \u2013 whether it be your unit or the whole building. If you don\u2019t 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\u2019 policy.<\/p>\n Contents coverage replaces your belongings if they are lost or damaged.<\/strong> You may think you have little of value, but you would be very surprised how much it would cost you to replace everything \u2013 all at once.<\/p>\n You should insure for an amount representing the new replacement cost of all your belongings. Coverage is on a \u201cnamed perils\u201d or an \u201call risk\u201d basis.<\/p>\n