What is Tenant Insurance?
Tenant Insurance in Canada can be broken down into two categories of coverage: Liability and Contents Coverage.
Personal Tenant Liability Insurance
This coverage would protect you financially if you were ever deemed responsible for damages or injury to a third party. Slip and fall injuries are common, especially during snowy and icy Canadian winters, but accidents can happen anytime, and renters can be liable for injuries to others. A landlord’s policy won’t cover the cost of your defence if you are sued for injuries, even if the injuries weren’t your fault. Another good example is if you accidentally burn the apartment building to the ground. The Landlord’s insurance company will rebuild it, but they will go after you as the responsible party to repay them. Your tenant insurance policy can cover the cost of your legal defence and pay any judgments up to your coverage limits.
Belongings & Contents Coverage
Contents Coverage is a fancy term for your stuff. Your belongings might cost tens of thousands of dollars to replace when to stop and add them. If the building is damaged by fire, it could all be gone instantly. Many other risks are covered as well. Contents coverage can help pay the cost of replacing your belongings if they are lost, damaged, or stolen. What’s interesting about content coverage is that the coverage applies even when you are travelling.
Particularly valuable items require special attention to ensure that you’re fully covered. If you have expensive jewellery, furs, musical instruments, or similar items, speak with your broker to be sure you’re covered for the full value of these items. If your apartment is broken into, or there is a fire that damages your stuff, a tenant policy will replace your things so that you aren’t left with just the clothes on your back.
Additional Coverages Included
Lastly, but certainly not least, and maybe one of the most beneficial coverages on a Renter’s policy is Additional Living Expenses. If the building or apartment you’re living in is damaged, you might be forced to live elsewhere for a while. Depending on the extent of the damage, you could be displaced for just a few days — or it could be much longer. Your landlord’s insurance won’t cover your additional costs for hotels or the increased costs of eating out, but your tenant insurance can save the day and keep you from bearing the expense yourself.
Tenant insurance might be a requirement in your lease, or it might not, but regardless it’s something every renter should have. Because a renter’s insurance policy doesn’t cover the cost of rebuilding the apartment or house you’re living in (the landlord’s policy does that), the cost of a tenant policy is often much more affordable than a home insurance policy. Speak with your broker to be sure you’re covered. Getting a policy to protect yourself might cost less than you think.
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Posted in Renters on January 16, 2019 by Harvard Western Insurance
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