Do you really need tenant insurance?
Everyone living in an apartment should have tenant insurance. Matterhorn investing wants to help you understand why tenant insurance is important for you and your home.
#1. Accidents & Non-Control Situations
The unfortunate reality is that we all encounter accidents and situations that are out of our control, even when we do our best to avoid them. There are so many ways an accident can happen, and if it involves you, your pet or any of your possessions, your insurance will protect you.
You might think of an accident as moving furniture and putting a hole in the wall- you can cover the cost of that without insurance right? Or what about spilling red wine on the carpet- you can clean that yourself. So why is tenant insurance important?
Many don't consider accidents as larger catastrophes. The larger costs of accidents are the ones that most often catch us by surprise and aren't the ones we can afford to make right, on our own. If your building encounters a fire or flood, your possessions would be covered under your insurance policy. If you don't have insurance- imagine the personal cost to you, to replace all of your furniture, electronics, clothing, jewellery, kitchenware and other day to day and special items.
Even if you don't think your personal items add up to much-- try adding the replacement cost up for both large and small items in your home, as well as personal clothing, jewellry, hair and beauty products, etc. It can quickly add up into the thousands.
While the building owner would have insurance to cover the building itself, the contents of your apartment are not included in that policy.
We all do what we can to prevent theft in our lives. We lock our doors and choose to live in secure buildings, but smart & experienced thieves can overcome these obstacles. Tenant insurance protects your belongings, not from getting stolen, but from being replaced at a cost to you.
Liability insurance is probably the most important aspect to Tenant Insurance.
These days our lives are busier and our attention spans are shorter. It's easy to make a mistake that can cost us and our neighbours, greatly. While the best way to avoid liability is to pay attention to details and be aware of your surroundings, things do happen. Your toilet could overflow, flooding your bathroom and causing water damage to the neighbour beneath you; Your usually happy pooch could bite a friendly neighbour while in the elevator; A visiting guest could trip and fall in your unit, causing damage to their person.
The average person can't afford to pay out someone else's medical bills or replace/fix damaged possessions. Tenant insurance can provide the necessary financial reimbursement, so you don't have to.
Tenant insurance isn't expensive and can often be bundled with your car insurance. Roughly $20 a month is a low cost for peace of mind.
Matterhorn Investing strongly recommends every resident obtaining tenant insurance.