You think you don’t have that many valuable belongings. You’ve moved into your first place and you never thought it would be important to insure the equivalent of that suitcase of clothes you own. Don’t be fooled!
A home insurance contract
First of all, it is important to understand that the home insurance contract consists of two parts: property insurance and personal liability insurance.
Insuring your belongings
This section of the contract covers the goods you own, such as clothes, electronics, sports equipment, furniture, appliances, in short, everything—even the frames hanging on your walls as well as the tacks used to hold them up!
If you are the victim of theft or if a fire destroys your home, would you be able to replace everything you own the very next day?
Protection against personal liability
Many are unaware of this section, yet it represents one of the most important parts of your insurance contract because it covers you if you were to find yourself in a sticky situation.
First of all, it is important to know that this section of your contract covers you anywhere in the world for actions that you may commit inadvertently. For instance, you are on a trip and you light candles in your room to create an ambiance but you fall asleep and cause a fire in the hotel where you’re staying. You are quickly held accountable for the fire and are sued for the damages. Do you have the financial means to cover the cost of rebuilding the hotel?
Furthermore, this section covers you for the actions committed by your pet. You own the cutest little kitten that has fun nibbling everything in the house, even electric wiring such as the wires of the lamp on your nightstand, your television, etc. Imagine a case in which all this nibbling leads to a short circuit and then a fire in the building you live in… In this scenario alike, the bill can be quite steep.
Your insurance contract
Home insurance that caters especially to tenants will offer you protection in situations similar to these and thus, will allow you to avoid major head aches…
What should I do to protect myself?
Contact your Lareau broker who will help you find a tenant insurance that satisfies your needs for a low price!