Tenant Insurance in New Brunswick

What is New Brunswick tenant insurance?

What is tenant insurance? Let an insurance broker in New Brunswick explain it to you. Here at BrokerLink, we have a team of licensed insurance advisors ready to help you understand the ins and outs of tenant insurance.

Tenant insurance, also known as renters insurance, is specially designed to safeguard New Brunswick renters against the specific risks they face. Some of these risks may include theft, liability claims, and property damage. That is why tenant insurance contains coverage to protect you from all three of these risks and more. A few of the most common types of renters insurance coverage, which we explain in greater detail below, are contents coverage, liability coverage, and additional living expenses coverage.

If you think tenant insurance sounds a lot like homeowner’s insurance, you are correct. The only significant difference is that tenant insurance does not include dwelling coverage, which is covered by landlord insurance.

Is tenant insurance mandatory?

Do I need tenant insurance? Most experts would say yes. That said, tenant insurance is not a legal requirement in New Brunswick in the same way that car insurance is. This means that no government mandate says you must purchase it. However, landlords can require it, so you must check with your landlord before signing a lease agreement. Many landlords include a clause in the lease agreement that says that the tenant must purchase renters insurance coverage throughout the duration of their lease.

If your landlord does not require you to buy it, it is still usually recommended, given that insurance is the only way to protect yourself financially, should something go wrong. For more information on whether tenant insurance policies in New Brunswick are mandatory, reach out to BrokerLink today.

What coverage does New Brunswick tenant insurance include?

Since New Brunswick tenant insurance is not a legal requirement, many policies look different from one another. That said, there are a few types of basic tenant insurance coverage that you will find in almost any policy you come across, and they include the following:

Contents coverage

Contents coverage is the first type of basic tenant insurance. This coverage is designed to protect the contents of your rented space, i.e. your personal belongings. If, for instance, a fire breaks out in your apartment and ruins your furniture, you can file a contents coverage claim and receive a payout from your insurer to help cover the cost of replacing the damaged items. Types of items that might be covered include electronics, sporting equipment, clothes, decor, artwork, clothing, and more. Further, the types of risks that you will be protected against with contents coverage vary but usually include theft, wind, smoke, fire, explosions, falling objects, and more.

When adding content coverage to your New Brunswick tenant insurance plan, you will need to select a coverage limit. Choosing the correct coverage limit is especially important for content coverage, as you will want to be financially secure in the event of a total loss. Therefore, experts recommend calculating the actual cash value of the items inside your home in order to determine the ideal coverage limit. Remember that actual cash value accounts for depreciation. Alternatively, if you add replacement value coverage to your policy, you can calculate the total cost of items inside your home at the time of purchase.

Additional living expenses coverage

Additional living expenses coverage is similar to loss of use coverage in car insurance in that it will pay you to relocate if your rented space temporarily becomes uninhabitable. The only catch is that an insured peril, such as fire, smoke, explosions, lightning, etc, must have caused the damage to your unit. So long as our policy covers the cause of the damage, your insurance provider will reimburse you for the living expenses that you incur until you can return to your unit.

You can file a claim to cover various living expenses, including hotel or home share fees, delivery services, storage unit fees, extra food bills, and more. Please note that the insurance company will only reimburse you up to the coverage limit, so just make sure that you do not exceed your limit.

Liability coverage

Liability coverage is the third type of coverage that you will find in most New Brunswick tenant insurance policies. As the name suggests, it will protect you against liability claims. Liability claims can occur for a number of reasons, but most commonly, they arise from property damage or bodily harm. For example, if guests injure themselves while visiting your home, they could sue you. If you had to pay for the cost of the lawsuit on your own, it could be quite expensive.

Still, with liability coverage, your insurance company will compensate you for various expenses, like legal fees, medical bills, and more. In New Brunswick, most tenants choose to add between $1,000,000 and $2,000,000 in liability coverage to their policies.

What extra protection can I add to my New Brunswick tenant insurance policy?

If you aren’t satisfied with basic tenant insurance coverage, consider adding the following types of extra protection to your plan:

Overland water coverage

Overland water coverage can pay to replace items damaged by water so long as the damage was caused by an overflow of water from a nearby lake or river, melting ice, or heavy precipitation. Since New Brunswick is partially on the coast and contains many other bodies of water, adding this type of flood insurance to your tenant insurance plan might be wise.

Sewer backup coverage

Sewer backup coverage is a second form of flood insurance that might be important for New Brunswick tenants. With this type of coverage, you will be financially secure if sewage or wastewater backs up, comes out of the drains in your rented space, and damages your personal belongings.

Identity theft coverage

Identity theft coverage will reimburse you for money lost or for costs incurred trying to recover your information if you are the victim of identity theft. In other words, if a thief steals your credit card, social insurance number, driver’s licence, or passport from your home, you can file an identity theft coverage claim.

Personal valuables coverage

Personal valuables coverage is yet another form of extra protection for New Brunswick tenants. It is designed for tenants with many high-value items and can be purchased as a floater or endorsement. Personal valuables coverage picks up where contents coverage leaves off and has fewer restrictions, making it so well-suited to high-value items. If you want to add a personal valuables floater to your New Brunswick tenant insurance plan to protect fine jewellery, antique furniture, and more, contact BrokerLink today.

The factors that insurance companies consider when calculating New Brunswick tenant insurance premiums

Each insurance company in New Brunswick uses its own risk-calculation algorithm. Thus, these algorithms are different. That said, many contain similar factors that help insurers assess a customer’s risk. The factors that are considered for tenant insurance, although they may be weighed differently by each insurance provider, usually include the following:

• Property type
• Location
• The estimated value of your personal belongings
• Your credit score
• Whether or not you have roommates, and if so, how many roommates you have
• Whether or not you have pets, and if so, how many and what species and breed they are
• Details on the property such as the building materials, including the roof, plumbing, and electrical
• The heat source of your rental
• Your personal insurance claims history
• Your chosen deductible amounts

To receive a free and accurate tenant insurance quote in New Brunswick, contact BrokerLink today.

New Brunswick tenant insurance vs. landlord insurance explained

Some people are confused about the differences between landlord and renters insurance. We are here to explain these differences so that you can better understand why buying tenant insurance coverage is so important.

Landlord insurance, unlike tenant insurance, is intended to protect property owners from the risks they face. That is why landlord insurance contains dwelling coverage - to protect the home they own from physical damage. It is also why landlord insurance contains liability insurance that safeguards owners against tenant claims.

On the other hand, tenant insurance is designed to protect what tenants own - namely, their belongings. Thus, all tenant insurance policies contain contents coverage that can pay to replace a tenant’s lost or damaged items. Landlord insurance does not cover a tenant’s personal belongings. It only covers damage to the physical structure that the tenant lives in. Landlord insurance also doesn’t cover third-party claims made against tenants, which is why tenant insurance contains its own form of liability insurance.

Now that you know a little bit more about landlord and tenant responsibilities and how this manifests in unique types of insurance coverage, it might be worth speaking with a broker who can help you purchase the right policy. Get in touch with BrokerLink today to begin your renters insurance journey in New Brunswick.

Buying New Brunswick tenant insurance with roommates

Do you have roommates with whom you share your rented space? If so, then you might be wondering if you need to purchase a separate tenant insurance policy or if you can buy one policy together. Depending on your insurance provider, you might have both options available to you. Some insurers allow multiple people to be named on one tenant insurance policy.

However, there is usually a limit to the number of people, e.g., a maximum of two to four people. If you live with three or more roommates, you may be unable to all be added to one policy. In this case, purchasing individual policies would likely make the most sense. If you live with a number of people within the insurance company’s limit, you could buy one together. There might be some drawbacks to this, so it’s essential to speak with an insurance broker before making any decisions.

For example, some insurance companies only offer coverage for the main policyholder, so if everyone’s personal belongings were damaged in a fire, there is a chance that only the main policyholder would be reimbursed.

Further, when more than one person is a policyholder on the same policy, anyone can file an insurance claim. Theoretically, one of your roommates could choose to submit a claim without your knowledge. In the insurance world, the more claims you make on your policy, the higher your premium will be. Thus, your rates could increase without you realizing it because of one of your roommate’s actions. On the other hand, when you buy an individual tenant insurance policy, you will have complete control over when and how claims are submitted. You can also rest easy knowing that you will be fully protected according to the terms and conditions of your policy.

We’re in your community

BrokerLink prides itself on being a part of every community in which we operate. That’s why we try to get to know our New Brunswick customers. As we see it, this is the only way to ensure that you find the best possible insurance policy for your needs. Contact us today to find out more about how BrokerLink was founded on the pillars of generosity, excellence, respect, and integrity.

Contact us

At New Brunswick BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, or pets, let us help you find the best coverage possible. One of our licensed brokers can also give you more information on additional interest home insurance and offer quality tips for first time renters in New Brunswick.

You can reach us by phone, email, or in person at any of our New Brunswick locations. No matter how you contact us, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool, which can provide you with a competitive quote in minutes.

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New Brunswick renters insurance FAQs

Where can I buy renters insurance in New Brunswick?

Buying renters insurance in New Brunswick has never been easier. You can purchase insurance from an insurance company or through an insurance broker, both of which are quick and convenient.

How can I save money on New Brunswick tenant insurance?

You might be able to save money on New Brunswick tenant insurance by choosing your deductibles and coverages strategically. For instance, high deductibles usually result in cheaper premiums than low deductibles. Further, only picking the coverage you need instead and removing coverage when your policy renews that you no longer need can help you save money. You could also lower your rates by qualifying for a discount, such as a sewer backup detection device discount, monitored security alarm system, multi-policy discount, employment-based discount, or education-based discount.

What is not covered by New Brunswick renters insurance?

Intentional damage is never covered by New Brunswick renters insurance. In addition, if you illegally occupy the space you live in, you will not be eligible for tenant insurance coverage. Tenant insurance policies also do not cover wear and tear or damage caused by risks that are not named in your peril. Thus, unless you add overland water or sewer backup coverage to your policy, you will not be covered if your personal belongings are damaged by water. The same goes for damage caused by war, acts of terrorism, and earthquakes, which are usually not listed as insured perils in tenant insurance plans.

What types of flood insurance can be added to New Brunswick tenant insurance plans?

Many insurance companies allow customers to add two types of flood insurance to their tenant insurance policies: overland water coverage and sewer backup coverage. Both can protect you and your personal belongings from water damage in specific circumstances, such as if a sewer backup occurs in your leased space.

What types of claims are most often submitted by tenants in New Brunswick?

A few of the most popular types of claims submitted by tenants in New Brunswick include flooded basement claims, liability claims, and fire claims. That said, theft-related claims are by far the most popular for tenant insurance policies.

Where can I get a free renters insurance quote in New Brunswick?

New Brunswick customers can obtain free renters insurance quotes from insurance companies and brokers in their area. You can ask for a free quote directly from a licensed broker by calling or visiting an insurance office in person, or you can visit an insurance broker’s website to request a free quote online.

If you have any questions, contact one of our local branches.