The Insurance Bureau of Canada (IBC) reports that about 50% of people who rent in Canada don’t carry tenant insurance. One of the main reason’s tenants don’t purchase insurance is because there is a common belief the Landlords insurance covers them as well. This is an unfortunate misconception, while the Landlord must carry 3rd party liability insurance, the tenant’s contents, if damaged are not covered by the landlord’s policy. Furthermore, should the tenant cause damage, such as a flood or fire, the tenant could be held liable for all damages.
What is covered in a tenant or “renter’s” insurance policy?
Depending on the policy you purchase there are different coverage plans to choose from.
Most standard plans will include:
- Contents: Covers loss of personal belongings.
- Personal Liability: Protects you if someone injures themselves while visiting you, and liability should you inadvertently cause damage to the property.
- Additional Living Expenses: Temporary living expenses, including meals and a place to live, if you are temporarily displaced.
Reasons why you should have tenant insurance.
- The landlord may request it
- It may be deemed a material term of the rental agreement
- Covers loss of personal belongings
- Provides liability coverage
- It covers additional living expenses such as a hotel and food in the event you suddenly have to move out.
To Prepare:
- Take Inventory of Your Home – Take inventory of all your belongings. It is wise to keep a list of all the items you own for loss and damages purposes. Pictures are also highly recommended, especially of high value items, include any serial and model number for extra protection.
- Write up some questions to Ask Your Insurance Agent – Stay aware of the risks and necessities of home and tenant insurance from the beginning to avoid uncertainty.
- Learn how insurance companies determine the premium for your policy – From the Insurance Bureau of Canada or other sources.
Are you looking for a new place to call home? We’re here to help. These are stressful times and looking for a new rental home is already stressful; it doesn’t need to be more stressful. We’ve created a new service to help you find the right home or apartment that meets your personal and financial needs. Let us take some of the stress off of you. Get in touch today and let us advocate on your behalf.
Are you looking for a new place to call home? Contact Kim Ashton at kima@stratamanagers.ca These are stressful times and looking for a new rental home is already challenging; it doesn’t need to be more hectic. We’ve created a new service to help you find the right home or apartment that meets your personal and financial needs. Let us take some of the stress off you. Get in touch today and let us advocate on your behalf.