Why Tenants Insurance is Important, and How to Keep Costs Down

Why Is It Necessary To Take Tenants Insurance And How You Can Bring Down The Premium Amount?

Contemplating whether to take a tenants insurance? How would such insurance be beneficial for you? These are some of the questions we will be looking into in the following sections so that you can take the right decision.

Is it Necessary to Take Tenants Insurance?

The type of personal property coverage that will be required and expenditure on tenants insurance will primarily depend upon the value of your property. Few of the questions you need to ask yourself while contemplating suitability of this type of insurance would include:
  • How much are my things worth?
  • Will I be able to replace them if they get stolen or destroyed in a fire?
  • What if any liability lawsuit is filed against me?

Is There a Dollar Limit on Certain Things with Tenants Insurance?

tenants insuranceThere are certain types of belongings that can have a dollar limit in a tenants insurance. Let us look at what are those things.
  • Business property
  • Coin collections, bank notes, and money
  • Bonds, stocks, and other securities
  • Watercraft including motors, trailers, accessories, etc.
  • Gold and silverware
  • Jewelry and furs
  • Computer software 
Moreover, coverage for paintings, fine arts, antiques, and similar other things which cannot be replaced is limited by their market value. However, higher limits of few of these items are available by taking optional coverage.

What are the Losses Covered by Tenants Insurance?

If you take this type of insurance then it will provide coverage against:
  • Lighting or fire
  • Hail or windstorm
  • Certain types of water damage
  • Theft
You can also take optional coverage by paying additional premiums. Such optional coverage would consist of:
  • Identity restoration
  • Additional liability coverage
  • Coverage for additional business property
  • Earthquake coverage

Is it Possible to Lower the Premiums?

Deductibles are a certain part of the covered loss that you will have to bear. For instance, if there is a $500 deductible then you will have to pay $500 for the covered loss.
In case, you have higher deductibles, then it will help to lower your premiums. However, it will increase the amount of loss that you will have to bear. Thus, you will have to decide about the amount of covered loss you are prepared to bear and work accordingly to save on insurance premiums.

Is it Possible to get a Discount on the Insurance?

Many insurance firms will be ready to provide you some discount when you take steps to improve the security of your home. As for example, if you have taken steps to prevent water or fire damage and installed burglar or fire alarms then you will be able to get discounts on your insurance coverage.

A Final Note

We will conclude here with a final note that tenants insurance provides many benefits and gives you peace of mind that you will be able to recover from a loss in case of any eventuality. 
Moreover, it is possible to lower the premium amount and also get discounts to bring down the total amount you have to spend on your insurance.