How Much Does Tenant Insurance Cost
Tenant insurance can take one of two forms. In the most popular version, this insurance protects the property of tenants from damage that may occur, much like a homeowner's insurance policy. The second form of tenant insurance protects a landlord from property damage and pays for certain repairs and even cleaning services upon tenant move-out. Both policies are generally in the same price range: about $15-$30 per month depending on the applicant.
Landlord Are Not Responsible For Damages
Many tenants believe landlords are responsible for certain damages that happen around the home. Let's say a landlord owns a chest freezer that is part of the property. The tenant goes to Costco, buys $500 worth of food, and then the freezer fails after that food gets stocked. Even though the landlord owns the freezer, they are not responsible for the losses. Tenant insurance would cover it, however, if the premium was paid on time and the policy covered that type of loss.
Tenant Insurance Covers All Tenants
Now let's say that a tenant starts a bath, but forgets that they turned on the top. The emergency drain gets overwhelmed and water starts flowing out. Eventually the water works its way down to the apartment below, drips onto that tenant's Apple laptop, and fries it out. Tenant insurance would cover the personal belongings of other tenants from damage caused personally up to the liability limits that apply on the policy.
There Are Two Replacement Options
Tenant insurance can either provide total cost replacement or provide an actual cash value of the item that was lost. When repairs are required in an apartment, a total cost replacement would often be a better option. If electronics are 10-15 years old, a total cost replacement might be a good option as well. For recent purchases, however, a policy that provides current cash value may be more affordable. There will often be a deductible involved as well, usually within the $500-$1,000 range. Some policies have no deductible at all. Tenant insurance can help landlords and tenants protect their property effectively and affordably, so if you don't have a policy today, then inventory your items come up with a total value amount, and then get it insured.