6 Common Tenant Insurance Myths Debunked

Let’s Get You The Facts About Tenant Insurance Myths

People looking for their first rental are often confused when discussing tenant insurance, also known as renters insurance, with some surprised that such a thing even exists. This is understandable, given that insurance can be complicated and most first-time renters are young. Even people who have dealt with similar situations might raise an eyebrow at the concept. After all, insurance is usually paid on something you own so that if something happens, the costs of overcoming it are reduced. When put into this perspective, the idea seems strange. Being a renter means you don't own your dwelling, so why would you need insurance?

Seemingly contradictory situations like this are responsible for many common misconceptions in the insurance industry, including some common tenant insurance myths. This article is here to debunk some of those myths so that you better understand what's needed.

Does My Landlord's Insurance Cover Me And My Belongings?

A common tenant insurance myth is that a landlords policy covers the tenant. Your belongings are your responsibility and are covered by a tenants insurance policy. Landlord insurance is designed to cover your landlord in the event of something they are responsible for going wrong. This means that if your landlord doesn't do the maintenance tasks that are their responsibility by law, their landlord insurance might not cover them. Your landlord's insurance policy would also cover things provided for the tenant, such as a fridge, oven, or furnishings that are part of the contract.

However, this is something that you wouldn't be responsible for, as you wouldn't be responsible whether your landlord has insurance or not. 

Does My Tenant Insurance Only Cover My Belongings?

A common tenant insurance myth is that your policy only covers your belongings. Although contents coverage is one of the most essential things your insurance covers, that is not all that the policy covers.

Your policy also provides liability coverage in case of an accident for which you are held responsible. For example, you might be held legally responsible if someone is injured while in your rental unit. If you have the protection insurance provides, your finances could be protected if such an event occurs. 

Another benefit is that you are covered if your living unit is damaged and you cannot live there for a while. For example, if an event like a fire occurs, and your apartment is damaged to the point where repairs are needed before you can live there again, you may incur extra costs, such as moving or living in a different location. Added costs of doing this are covered in your policy.

Can I Stop My Landlord From Requiring I Have Tenant Insurance? 

No, despite the common tenant insurance myth of it being possible, there is nothing you can do. It's possible you end up with a landlord who doesn't require you to have it, or you are such a good tenant that they were willing to overlook the fact that you lack that type of coverage. Sadly, you can not stop them from making it a requirement on their own property. If you are turned down an opportunity to rent due to your lack of coverage, there is nothing you can do. Due to the protection that tenant insurance provides, however, it is still recommended you have it, even if your landlord doesn’t require it,

Are My Roommates Covered Under My Tenant Insurance Policy?

A common tenant insurance myth is that all roommates are covered by one insurance policy. Each roommate can be under the same coverage plan or under different coverage. Unless they are all listed under a single policy, this is untrue. If your roommate faces charges or their stuff is damaged or stolen, your insurance will not cover them unless their names are also on your tenant insurance policy. Each roommate is responsible for their own insurance to provide themselves with the proper protection. It is important to note that if your roommate submits a claim, your policy and insurance will only be affected if they are under the same coverage.

Does My Roommate's Tenant Insurance Cover Me?

Not by default. The other side of the tenant insurance myth is that your roommate’s coverage won't protect you unless you are under the same coverage as them. You can not depend on your roommate's policy to give you financial protection for theft, damage or legal cases. Unless you and your roommate are under a single policy, you must have your own insurance policy to protect your belongings and provide liability coverage.

Is Tenant Insurance Expensive?

Fearing how much you will need to pay is understandable. After all, things like home insurance and auto insurance can be very expensive, meaning that expensive coverage is another tenant insurance myth. Given the vast amount of additional living expenses you likely have, it is understandable to want to save a little bit of extra money.

You can be relieved since it is not very expensive. It's much less expensive than its counterpart home insurance. The average cost ranges from $20 - $50 per month, depending on your individual circumstances. Factors that can impact the cost include the following:

• The location you are renting in
• How large your deductible is
• Whether or not you bundle it with something else, such as car insurance
• The level of coverage that you desire
• The age and price of the property you are renting
• The claims history of the insured
• Which insurance provider you are with

Please note that this list does not contain a complete list of factors, as other issues might impact your rates. It is recommended that you speak with your Morison Insurance broker to find out more or get a tenant insurance quote.

Ensure You Have The Proper Coverage

Insurance can be challenging to understand, often containing many specific rules, exceptions, and complications. Tenant insurance myths aren’t the only misconceptions in the industry. In addition, each person's needs, wants, and priorities are different, meaning that each person's insurance policy will be unique. For this reason, you must ensure that you get the right policy. You can do this with Morison Insurance.

Morison Insurance is a family-run insurance brokerage that has been providing service to clients for over 100 years. With thousands of reviews, we are a 5-star brokerage that does our best to provide our best coverage to all our clients. Fill out the form below or call us at 1-800-463-8074 for a quote. You'll be glad you did.