contingency insurance

What Is Contingent Insurance and Why Do You Need It?

As a tenant, you may think that your landlord has all the insurance you need in the event of disaster. Unfortunately, not all insurance paid by a third party covers you. This makes having contingency insurance a priority for many.

What It Is

Contingency insurance is secondary insurance coverage. The insurance protects the insured when the other party’s insurance fails to cover them. Another reason people may have contingent insurance is when legal remedies are known to be non-existent, slow or uncertain regarding specific losses. Some policies fail to cover losses if another policy is in place. That policy then takes over for that specific loss.

Tenant Example

If a loss happens at the apartment you rent, your landlord has insurance, but that doesn’t mean your belongings are covered by that policy. Renters insurance comes in and protects your belongings in the event of a flood, fire or theft.

Corporate Example

Corporations need marketing to advance and grow their businesses. However, a marketing campaign adds risk to the company. A contingent insurance policy can cover those marketing efforts.

A loss happens to the most careful of people. Be prepared with contingency insurance in the event you need it. An insurance agent can go over your risks and recommend policies to cover your individual risks in relation to your situation.