Many tenants have an assumption that the property’s insurance protects them. They might think that they don’t need their own tenant insurance insurance policy since their landlord has coverage for the building. But that’s not true. As a tenant, you need separate tenant insurance or renter’s insurance. It provides great protection that your landlord’s insurance policy doesn’t cover. How can you rely on a policy that is being paid by someone else? Most landlords charge you rent in Canada which doesn’t include insurance. Having your own tenant insurance is important to safeguard your financial security. The benefits of tenant insurance are many including peace of mind if something unexpected happens.

According to a survey conducted by TD Insurance, half of Canadian renters don’t have tenant insurance. Experts say renting a property must be followed by purchasing insurance. Many Canadians skip tenant insurance thinking it’s too costly or that they’re covered by someone else’s policy. But this puts them at financial risk.

Let’s take a closer look at some of the key benefits of tenant insurance:

Personal Property Protection

Items such as clothing, furniture, and appliances stored in the rental unit are often highly valuable. Given this, one of the main reasons to obtain tenant insurance is to safeguard them if they were to be damaged or lost due to theft, fire, or other perils covered under the policy. Insurance for landlords is only for damage to the building itself. It’s not the inside items such as furniture, electrical appliances, clothing and other needed items for your rental space.

The tenant insurance will reimburse the items owned by you up to the mentioned values outlined in your contract. So, if your property is robbed or there is a fire or disaster that renders all your belongings useless, the insurance company can cover the cost of replacing your assets. The coverage amount will depend on the worth of your things. Usually, personal property coverage is 50% of your dwelling coverage amount. You can seek professional advice from our insurance experts to learn more about the coverage amount.

Liability Protection

The benefits of tenant insurance include third-party liability coverage to keep you safe from lawsuits when a visitor of your renting space has been hurt and is suing you. To give an example, if a guest steps and breaks their arm on one of your buildings’ entrance steps, you could be blamed legally. If it comes to such that the person decides to sue you, your tenants insurance can take care of their medical bill and any legal fees expended defending yourself. People can get liability limits in their lease agreement for the amount. You will not have to spend extra money to the extent that you are sued since the cost will be covered.

Additional Living Expenses

If your rental property becomes temporarily uninhabitable due to an event like a fire or natural calamity your tenant insurance can help you cover the extra living expenses. This encompasses hotel accommodation, food between meals you’ll eat due to being away from home, and other expenditures you may be forced to bear. 

The benefits of tenant insurance for additional living expenses can vary depending on the type of policy and coverage you have. This is a good coverage addition because in case of emergencies you’re hardly able to arrange finances for temporary accommodations. Financial safety is crucial so that things remain manageable for you in case of a disaster.

Affordability

Many of us believe tenant insurance to be an expensive feature. But you might save a lot in protection when you consider what you get from it. Often policies range anywhere between $15 – $30 per month and the amount you pay for a premium plan will be based on your chosen limits and deductible.

Instead of a high amount in the situation of the accident, you won’t be able to cover all losses. You can rely on trusted insurance companies like Insurance Tiger. Paying a monthly fee to avoid this would be a very small payment on insurance cost. Do you already have it? If not, it’s time to find out, as this usually is the most cost-effective way to keep your finances healthy even as a renter.

Flexible Coverage Options

Finally, the many benefits of tenant insurance lie in the flexibility to get your policy offering that would meet your specific needs and budget. The policy provides flexibility between coverage limits for personal property, liability, and others so that you can choose which is more suitable for your condition.

Another instance is if you have possession of expensive stuff that includes electronics, jewelry, and art, your personal property coverage should be proportionately increased. Or say, you have certain contagious diseases or hobbies that aggravate liability, partying or owning a pet you can reduce risk by increasing their coverage.

Another feature of a policy is that it permits you to determine the deductible that you are not uncomfortable with and if it is affordable to pay monthly premiums. A high deductible means that you will pay less for insurance premiums. This factor lets you ‘fit’ an insurance plan extremely well into your budget: so, you get the coverage you need at a price you can afford.

Landlord-Tenant Law Requirements

In most states and municipalities, there are laws that require landlords to make certain that the tenants are covered by landlord insurance. In this kind of situation, your landlord probably stipulates having their policy as a precondition even though this is not mandatory in your place.

Overall, the benefits of tenant insurance make it a wise investment for any renter. It protects your personal possessions, shields you from liability, covers additional living expenses, and is relatively affordable. When you weigh the cost against the potential risks you face as a tenant, it’s clear that having this coverage is essential.

Rather than hoping nothing bad will happen, tenant insurance gives you the security of knowing you’re financially covered if the unexpected occurs. It’s a small price to pay for the peace of mind and protection it provides.