What percentage of the Coverage C limit can a tenant use for improvements, alterations, and additions made at their expense?

In a tenants policy, Coverage C, often referred to as personal property coverage, typically allows tenants to make improvements, alterations, and additions to the property they are renting. The amount of coverage available for these enhancements is usually a small percentage of the total Coverage C limit.

In this context, tenants can use 10% of the Coverage C limit for improvements, alterations, and additions that they make to the rental unit at their own expense. This provision is designed to provide some financial support for the investments tenants might make in customizing their living spaces, acknowledging that such modifications can enhance the property’s value and the tenant's living conditions.

The choice of 10% represents a balance between providing tenants with some level of coverage for their expenses while also setting a limit to the insurer's exposure due to the tenant’s improvements. This is essential for both the tenant's assurance that some of their investment is protected, and for the insurance company's risk management.