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woman holding a smartphone with HWIClick to purchase tenant insurance for Saskatchewan or Alberta (1)

What is Tenant Insurance? [Beginner’s Guide]

Did you know that over 40% of Canadian renters don’t have tenant insurance? Even more troubling is many renters wrongly believe their landlord’s insurance policy protects them. This common misconception could cost you thousands of dollars in the event of a loss. The truth is that your landlord’s insurance only covers the building structure itself—not your personal belongings or any liability risks you might face.

While not always mandatory in Saskatchewan, renters insurance is fundamental for safeguarding against unforeseen damages and liability claims.

The financial impact of not having tenant insurance can be devastating. A recent survey shows that 51% of renters would struggle to replace their belongings after a disaster without proper insurance protection. Despite these risks, tenant insurance remains surprisingly affordable, typically costing between $25 and $35 per month—a small price to pay for substantial protection.

What exactly does tenant insurance cover?

Who’s Covered: The policy extends protection to the tenant, immediate relatives, dependents, and additional listed insureds.
What’s Covered:

Coverage Type	Status	Details
Your Belongings	✓ Included	Starts at $30,000 minimum coverage for your furniture, clothing, appliances, and personal items against named perils including fire, smoke, theft, water damage, and more.
Personal Liability	✓ Included	Protects you if someone gets injured in your rental or you accidentally damage someone else’s property. Starts at $1 million with options up to $5 million; this is the most affordable coverage on your policy!
Additional Living Expenses	✓ Included	Helps with hotel stays and meal costs if your rental becomes uninhabitable due to a covered loss. Typically covers up to 30 days for situations like mass evacuations.
Identity Theft	✓ Included	Covers expenses related to identity theft, including lost wages, document replacement, credit reports, and certain legal costs.
Legal Expense Insurance	✓ Included	Gives you access to a free legal helpline and helps cover costs if you need to pursue or defend your legal rights in certain situations.
Sewer Back-Up	Available to Add	Protects your belongings from damage caused by backed-up sewers or sump pump failure.
Overland Water	Available to Add	Covers damage from freshwater flooding, like when heavy rainfall or rapid snowmelt causes water to enter your rental unit.
Home Systems	Available to Add	Provides coverage for sudden and accidental breakdown of home systems and equipment like your refrigerator, stove, or other appliances.
Glass Buy-Down Deductible	Available to Add	Lowers your deductible specifically for glass-related claims, making it more affordable to fix broken windows or door glass.
Scheduled Items	Available to Add	Provides higher limits of coverage for valuable items like collections, jewelry, instruments, and other specialty items that exceed standard coverage limits.

This chart is meant to give you a general idea of what’s typically covered and is referenced from SGI Canada. The specifics of your coverage, including limits and exclusions, will be detailed in your actual policy documents.

Saskatchewan law doesn’t require tenant insurance, but many landlords make it a must in their lease agreements. This requirement helps both the landlord and tenant by providing financial protection when unexpected things happen.

The law might not require it, but tenant insurance is nowhere near as expensive as homeowners insurance because it doesn’t cover the building structure. The protection you get is worth much more than what you’ll pay for it.

INFOGRAPHIC TENANT INSURANCE

What is Tenant Insurance?

While your landlord’s property insurance covers the building, tenant insurance protects your belongings and gives you personal liability coverage in your rented space.

Personal Belongings Coverage:

If you walk through your rental and add up the total replacement costs for all your possessions, you might be surprised by the total. The protection doesn’t stop at home. Your items stay covered even if someone steals them while you travel or from your vehicle during a break-in. A stolen laptop from your car or furniture ruined by a burst pipe, tenant insurance helps replace these losses.

- Furniture, electronics, clothing, and appliances (that you own).
- Specific limits for jewelry, sporting equipment, and other valuables.
- Protection applies both in the home and temporarily away.

Liability Coverage:

Picture this: a guest slips on your kitchen floor and hurts their back, or your toaster oven starts a fire that damages nearby units. Liability insurance covers your legal defence costs and potential settlements if you’re found responsible in these situations. You stay protected worldwide, even if you accidentally hurt someone during vacation.

- Financial protection if you accidentally injure someone or damage their property.
- Covers legal costs and damages up to your policy limit.

Additional Living Expenses:

A fire might force you to leave your apartment. ALE then covers reasonable costs until repairs are finished or you find a new place. Hotels, restaurant meals (without cooking facilities), extra transportation costs, and sometimes storage fees for your belongings all get covered.

- Covers reasonable living expenses if your home becomes uninhabitable due to a covered loss.
- This can include hotel stays, meals, and other necessary expenses.

Optional Coverages:

Sewer backup
Overland Water
Identity theft
Home systems protection
Enhanced coverage options for jewellery, watches, fine arts, etc.

It’s important to note that coverage limits exist, and you may require additional coverage for high-value items.

https://gatewayplus.harvardwestern.nsolutions.insure/policy

How to Assess Your Coverage Needs

Inventory Your Belongings: Start by taking inventory of your possessions, including electronics, jewelry, and furniture, to determine their total value. This step is crucial in understanding the coverage limits you require. Check out our Inventory Checklist ← to help you get started!

“Figure out what your stuff is really worth and pick insurance that actually covers it well”. – JR Gutierrez, Digital Advisor at Harvard Western Insurance

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Ways to Save on Tenant Insurance

Saving on tenants’ insurance doesn’t mean compromising on coverage. Here are strategic ways to ensure you’re getting the best value for your renter’s insurance:

Compare: Start by comparing quotes. Our HWICLICK portal offers competitive rates starting at just $25/month, making it a great starting point for affordable coverage.
Increase Your Deductible: Opting for a higher deductible can significantly lower your monthly premiums. Just ensure it’s an amount you can afford in case of a claim.
Look for Discounts: Many providers offer discounts for various reasons—being claims-free, installing a centrally monitored alarm, or applying a credit score discount.
Annual Payments: Paying your premium annually rather than monthly can save on interest and administrative fees, making it a cost-effective option in the long run.
Review Annually: Insurance needs can change. Regularly reviewing your policy ensures you’re only paying for the coverage you need.

Throughout this discussion, we have explored tenant insurance’s nuances and essential aspects, underscoring its importance for anyone renting a home. With the right approach to selecting and managing a tenant insurance policy, renters can ensure that their sanctuary remains a source of comfort and security, even in the face of potential challenges.

The information provided in this article is intended for general informational purposes only and should not be construed as professional advice. This information should not be used as a substitute for personalized guidance from qualified professionals.

FAQs

Is tenant insurance required for every individual renting a property? Tenant insurance is not legally required, but it is strongly advised for all renters, whether in a house or an apartment. However, your landlord can stipulate in your lease agreement that you are required to obtain a policy. Be sure to ask the landlord whose name of the occupants renting is legally required to be on the policy.

What are the primary protections included in tenant insurance? Tenant insurance typically includes three key types of coverage: personal liability insurance, which protects you in case you’re held responsible for injury or property damage; additional living expenses, which covers costs if your rental becomes uninhabitable; and contents coverage, which insures your personal belongings against loss or damage.

Why do landlords require tenants to have insurance? Landlords typically require tenants to have insurance to ensure that there is adequate coverage in place if they are found liable in the event of damage or other issues. This protects both the tenant and the landlord from being financially responsible for the costs associated with such damage.

How does tenant insurance differ from a landlord’s insurance? While a landlord’s insurance typically covers the building structure, tenant insurance focuses on protecting your personal possessions and liability. Your landlord’s policy won’t cover your belongings or personal liability, making tenant insurance essential for comprehensive protection

Is tenant insurance mandatory in Canada? Tenant insurance is not legally required in most parts of Canada. However, many landlords now include it as a condition in lease agreements.

Thanks for reading our article; I hope you enjoyed this month’s topic on defining what tenant insurance is. Here are some more ways to access more insurance information and tips: