In response to recent questions about insurance for tenants, we realize the general confusion surrounding this insurance product, why you need it even though you are only renting a home, and what it actually covers. Writing the article below, we hope it will give you a better understanding of how the tenant policy protects you in various unprecedented circumstances. 

WHAT IS TENANT INSURANCE POLICY?

Among popular insurance policies such as homeowner forms, owner-occupied condos and others, tenant policy is a comprehensive package which is specifically designed for the needs of renters. 

Some major benefits of this package includes:

• Protection against damages to your personal properties, and

• Additional living expenses to help you maintain the normal standard of living when you are forced to move out as the unit is no longer fit for occupancy after an insured loss, in addition to

When it comes to renting a home, your personal property is not the only thing you need to worry about. Regardless of whether you live in a condo, townhouse or rented dwelling, the biggest possible claim that can arise out of ordinary use of the premise is third party liability losses.

REALISTICALLY, HOW WOULD IT PROTECT ME?

Consider these following scenarios:

• You live in a condo. You forget to tend to the ongoing stove, causing fire that triggers the sprinklers. Water splashes everywhere and travels down to the businesses and residential units below. The affected commercials have to close for repair, resulting in income loss; while the unit owners have to find a place to move out temporarily.

• You are walking your puppy on the street when someone trips on the lease, falls down and injures themselves badly. They are now suing you for their sufferings.

• You caused a fire on the landlord’s property by negligence. After the landlord’s insurance policy had been paid out for the fire claim, the insurer would  subrogate you for the indemnity.

DOES THE LANDLORD’S POLICY COVER TENANT’S NEGLIGENCE?

The short answer is NO. 

You are the occupant of the premise and depending on how your tenancy contract is worded, the duty of care required from you as a tenant may be stricken. Since such loss was caused by your own negligence, you will ultimately be responsible for the resulting damages. The injured/ affected third parties may try to sue the landlord as well, and the landlord’s insurer has the right to sue you to take back what they have paid out.

# Insurance Policies are subject to its own conditions and exclusions. For further details, please refer to specific insurer’s policy wordings.

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