It probably goes without saying that if you’re renting (whether it’s an apartment or a house), you’ve heard about tenant insurance (also known as content or renters’ insurance). Though it isn’t mandatory by law, some landlords will list it as a non-negotiable on a lease agreement.
Some people don’t spend much time into considering whether or not tenant insurance is right for them. Others refuse to go without it.
Where does the divide come from? Probably from a lack of understanding of how important tenant insurance is, and how it can come to your rescue when you least expect it to.
Here are 5 reasons why you need tenant and renters insurance in Ontario.
What Makes Tenant and Renters Insurance Worth It
1 – It provides you with coverage for your belongings
A common misconception with tenant insurance is that it only covers your big-ticket/expensive items. This isn’t the case. It covers every last bit of personal contents that you own within the rented walls, from your TV and computer, to your dishes and bedding. Even your toothbrush!
Imagine you lost all of your contents in a fire; how much would it cost to replace every item that you own? Thirty thousand dollars? Maybe even closer to fifty thousand? If you had no insurance, you would have to pay out of pocket to replace everything.
There are, of course, some conditions. A tenant insurance policy usually covers a minimum of about $30,000 worth of contents (you do have the option to increase that limit). Also, pricier items, such as an engagement ring or guitar, might require separate coverage to ensure that its full value is covered.
As a bonus, a tenant insurance policy also covers your belongings outside of the unit (personal items inside your vehicle, belongings on your balcony, stored in a unit in the basement of the building or in a shed on the property).
2 – It protects your guests from negligence
Liability insurance (which is an automatic part of your tenant insurance policy) covers you if someone is injured in your home, or for any damage to someone’s property that you may cause. For example, if someone trips on your carpet, hits their head and has to be hospitalized for a few days, you could be held liable for them missing work and losing income. Or, if a guest decides to sue you after being bitten by your dog, your liability insurance would cover the costs of the lawsuit (up to the coverage limit).
3 – It covers you for temporary living arrangements
Have you ever considered where you would live if your home became uninhabitable for a period of time as a result of a loss? Most people don’t. If you ever had to submit a claim for something such as smoke or water damage, or anything that would force you out of your home during the repairs, you would be covered for temporary living arrangements through your policy. Your insurance would take care of the costs of a hotel room, food, and other costs that you may incur while displaced (some companies will put a limit to this amount, however).
4 – It costs less thank you think
One of the reasons many opt out of purchasing tenant insurance is because they think it’s too expensive for the coverages provided. With the basic coverages, a tenant policy starts as low as $15 per month! In the grand scheme of things, it’s a pretty fair price for such amazing peace of mind! Click here to get started.
5 – It could actually save you money!
If you own a vehicle in Ontario, it’s mandatory that you have an auto insurance policy with at least liability coverage. Did you know that with most insurance companies, if you also sign up for a tenant policy with them, you may be eligible for a multi-policy discount? The best part about the discount is that the savings could potentially outweigh the cost of the tenant policy (with some exceptions). You could end up with two policies for the price of one!
One more point to take into consideration is preparation for the future. By starting small with a basic tenant insurance policy, you would be establishing insurance history, which in turn will help lower your insurance when you purchase your first home. To learn more about tenant insurance or to get a quote & purchase, click here.