As a third of Canadians rent their home (StatsCan The Daily), many mistakenly believe that tenant insurance is unnecessary. In reality, tenant insurance provides coverage for the things you own and want to protect. We break down the reasons why every renter needs tenant insurance.
Reason #1: Protecting your belongings
Although your landlord’s insurance protects the physical property, it stops at your belongings. Your possessions are solely your responsibility to protect from damage and loss.
Reason #2: Could you replace all your items if damaged?
It may not seem like you have that many possessions, or consider them expensive belongings, but consider how much it would cost to replace all of them at once out-of-pocket. Even replacing just your wardrobe, furniture, electronics, and other valuables adds up to a large bill. Taking a home inventory can help you see how it all adds up and help you determine how much coverage you need. Download our home inventory checklist.
Reason #3: Protection for more than just your belongings
Tenant insurance isn’t just to protect items. Perhaps far more costly than replacing your possessions are liability risks. As a renter, you are financially responsible for any damage to property and injury to people you may cause. If you left your washing machine running and a burst hose caused damage to a neighbour’s property, you would be responsible for the repairs, not your landlord. Repair costs and replacements can quickly add up. It’s not limited to property; if someone injures themselves in your residence, you’re also responsible. Tenant insurance protects you in the event of a liability lawsuit.
Reason #4: Keep life going if disaster strikes
In the worst case, significant damage to your residence can leave you without a place to live. When a disaster renders your apartment unlivable, it doesn’t mean your life stops. The costs for a hotel room, alternate rental, or potentially even meals can rapidly become a large bill. Additional living expenses coverage through your tenant insurance will cover these unforeseen costs when a covered loss forces you from your home. It’s important to talk to your broker about what your policy covers and any limits that may apply.
Reason #5: Less than the cost of two movie tickets
You may look at tenant insurance as another costly expense, but it is, in fact, very affordable protection. Premiums can start from as little as $20 per month. Considering how much it would cost you to replace your personal items on your own or pay a liability lawsuit, the cost is minimal.
To learn more about tenant insurance and the types of coverage available, click here.
Remember, you need to look out for yourself and protect your belongings with the right renter’s insurance coverage. Contact a BrokerLink broker today, and we will help you find the coverage you need based on the value of your belongings.