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Understanding tenants insurance

Can you afford to lose everything you own?
If you are like most tenants, you will probably never need to submit an insurance claim. But no one is immune from misfortune. Tenant insurance removes much of the worry from renting a home or apartment. It reduces the financial hardship and aid in emotional recovery after a disaster strikes. It provides the financial assistance required to get back to where you were financially before the loss – providing more financial assistance than any community or social agency can provide.

These commonly asked questions should answer most of your questions about what tenants insurance is – and why you should have it.

What is tenants insurance?
Tenants insurance is peace of mind. It reimburses you for your financial loss arising from mishaps that are "sudden and accidental" and hard to predict and prevent. For example, it can help you recover damage caused by fire, vandalism, windstorms, hail, explosions, plumbing problems, and many other hazards.

A tenant insurance policy also provides liability protection if you are responsible for an injury to a person or damage to another person’s property. If an insured loss forces you to leave your home temporarily, it will pay for your temporary living expenses, while your home is being repaired. Coverage and limits for losses and damages are different. Ask questions of your insurance representative to ensure you have the appropriate coverage for you.

Doesn’t my landlord’s insurance protect my belongings?
Landlords have relatively few obligations to compensate tenants for damage to or loss of personal possessions. Tenants, on the other hand, are responsible for harm they may cause to part of the building in which they live or others who visit there. A fire ignited by a tenant’s defective toaster could, for example, gut an entire apartment complex. That’s a lot of liability.

Won’t tenants insurance be expensive?
No. Tenants insurance is available at low costs for your personal property. It costs a great deal less than car insurance. The national average cost was $14 dollars per month. However, the amount may vary depending on the amount of personal property you own and where you live. It is best to shop around for the best price.

What if I don’t own much property?
You probably own a great deal more than you think – furniture, clothing, stereo, television, books, toys, jewellery, sports equipment, pots and pans, dishes … What would it cost to replace everything if your apartment had a disaster?

Are all tenants insurance policies the same?
There is no such thing as a standard tenant policy. Because coverage and price vary from one insurer to another, it is important to have your insurance representative explain the policy to you before you agree to coverage.

Who should I buy tenants insurance from?
Throughout Canada, insurance companies compete for your business either directly with their own agents or through independent brokers. They compete not only on price but also on service and coverage. Discounts may be available if you buy your tenant insurance form the same company that insures your car. Shop around for the policy that best meets your needs at the best price.

Be sure to ask about:

Content coverage
Replacement cost
Coverage
Extra living expense coverage
Liability and theft
What is NOT covered by the policy
Deductibles
Discounts
Scheduled articles coverage