Urban Dwelling

Tenant Insurance Policies

The recent tragic blazes on North Queen and North Prince Streets in Lancaster City were a loud reminder to us all that unfortunate things happen – even to good people.

While building owners have insurance policies to cover the structure and any liability on their part, these policies typically do not cover renters’ personal items and any liability on the part of the tenant. If the tenant does not carry their own insurance policy, that could spell trouble in the event of accidental destruction of the property (such as fire), theft and/or bodily injury. Without a tenant policy, a renter could risk the loss of everything they own and more; regardless of whether or not the event was their fault.

What could happen where I would need a tenant policy?

If it is the tenant’s responsibility to remove snow from the sidewalk, for example, and someone gets injured from the tenant not carrying out this obligation, the tenant could face a lawsuit. If the roof leaks and the water destroys an entertainment system, the value of these items could be lost. Even worse, the building could burn and everything could be lost. The list goes on and on and reaches beyond the imagination; but this illustrates the need for all renters to have a tenant insurance policy to cover both personal items and claims or lawsuits for their liability.

What kind of policy should I get?

Policies range in their coverage, but tenants should be sure to have enough coverage to cover the replacement cost on all of their possessions; make sure to specify that you want the replacement cost option on your personal belongings. Liability coverage, perhaps the most important part of the policy, is automatically included and coverage for additional living expenses you may incur due to temporary relocation is typically included in the policy as well. While basic tenant policies carry property and liability insurance, you have the ability to be covered for much more; bodily injury or property damage claims brought against you away from your apartment, coverage for thefts of items of large monetary value (like jewelry) and many other needs which may be unique to you. In the Lancaster, PA area, the average price I’ve seen for a tenant policy is in the neighborhood of $100/year depending on the amount of coverage the tenant elects to have – a no brainer. If you pick up the policy with your current car insurance company, it may gain you a hefty discount on your car insurance and make the tenant insurance close to being free.

Many landlords and agencies, such as Hometown, require tenants to carry some kind of policy that includes both property and liability insurance. If you are a tenant that does not have a policy, get one. If you are a landlord and do not require tenants to carry a policy, start doing it. You will thank yourself and others will thank you.

Sam Gorgone, Hometown Property Management Services, LLC

Contributions to this article by Christopher Vogt of Baron Insurance Group