At first glance, renting can appear a lot less risky than owning. Renting means you're not on the hook for property damage to the physical structure of the home. However, less risk is different than no risk. While you no longer need to cover your home itself, you still need liability coverage for legal situations and content protection to keep your personal belongings safe. This is where tenants insurance comes from and why protection for tenants is so important
Tenants insurance protects a tenant's most valuable and vulnerable items, including personal property. Additionally, it provides insurance coverage for a tenant's personal liability exposures, including liability protection against various damages and liabilities. It can also include additional financial protection in the event of theft, accidental damage to the property, or unintentional bodily harm on the premises. Reviewing your policy wordings ensures you understand what is and isn't included in your type of coverage and form of coverage.
If you currently rent the space you live in, you should strongly consider tenant insurance. Without tenant insurance, you have no insurance protection in the event of your personal belongings being stolen or accidental damage to the property. Additionally, if you are held legally responsible for something and need to pay court fees, you would be very vulnerable without tenants insurance. Tenant insurance provides you with peace of mind that your dwelling and valuables are protected against common risks and that, in the event of a covered loss, your additional living expenses are covered
Tenant insurance is often tied to your lease agreement, as many property owners require proof of tenants insurance. This ensures both sides have protection for tenants in place.
Tenants insurance is not legally required or mandatory in Ontario. That said, it is very common that landlords will require you to have a valid tenant's insurance policy (with proper coverage options) before you are provided with the keys to move into your unit. Even if proof of insurance isn't mandatory, you would take a massive risk by skimping on it. No tenant insurance means no protection for tenants from many common perils. The tenant will have to cover the costs of a liability or contents loss entirely if they do not have tenant insurance.
Tenants insurance and landlord insurance are different. Tenants insurance protects the tenant where landlord insurance protects the owner of the property.
The owner of the property will have insurance on the actual building, but their landlord insurance will not cover you as the tenant for your personal property or liability. In the event of a fire or other covered loss, if you do not have a tenant policy, you could be left without anything and be forced to replace everything you own, as well as pay additional living expenses. This is why protection for tenants is critical and why savings options and bundled coverages can help make policies more affordable.
Tenants require adequate coverage to insure the value of their personal property and at least $1 million in personal liability coverage. Many insurance brokerages recommend $2 million of liability coverage because it is relatively inexpensive and provides better protection for tenants in the event of serious injury or harm while visiting or staying at your property. Some other aspects you should ensure you are properly covered:
There are three primary elements covered by tenants insurance. The first is content coverage for personal property and personal belongings such as furniture, clothing, laptops, computers, TVs, sports equipment, books, and similar items. The second is additional living expenses coverage in the event of a covered loss, and you are unable to reside in the unit until repairs are finished. The third is liability coverage in case someone is injured while in your home.
As a tenant, contents insurance includes coverage for personal items and personal belongings such as TVs, computers, furniture, clothing, sports equipment, jewelry, and other high-value items. In the case of an insured loss, you are protected. Coverage limits in your tenant insurance policy determine the maximum reimbursement available. When obtaining tenant insurance, it is crucial to inform your insurance broker about the specific belongings and contents you own. This ensures your valuable items are adequately insured and the coverage limits in your policy are tailored to you.
Suppose there is a fire in your unit and you are not able to live in it until repairs are completed, or you have to find another rental condo or home. In that case, additional living expenses coverage will cover reasonable extra costs of lodging that you may incur until you move back in or find a new rental home.
Liability insurance coverage, or personal liability insurance, helps to protect you if someone suffers a bodily injury while in your rented home due to an accident or if you cause unintentional damage to another person's property. If the injured person launches legal action, you will have liability protection as outlined in the policy.
Not all tenant insurance coverages are the same, as each is geared towards specific tenant needs. Optional coverage provides additional protection for tenants who wish to safeguard valuable items or hobbies. Examples include:
These may come with different insurance premiums, so it's important to review coverage options and savings options with your broker.
Tenant insurance does not cover your personal items under certain circumstances, such as natural disasters like flooding or earthquakes. In addition, tenant insurance will not cover the physical structure of the building where you rent, as this is the responsibility of the property owners. It's also important to review policy exclusions and insurance terms carefully with your broker, as these outline what's not included in your type of coverage.
Tenant insurance is considered affordable for the protection it provides. On average, the cost of tenant insurance can be between $30 and $100 per month. There are numerous factors that impact tenant insurance premiums, including details about the property/unit, your personal belongings, insurance history, and more. Each insurance company will rate risks differently and offer different coverage options, so it is crucial to compare tenant insurance quotes.
To get an accurate tenant insurance quote based on your specific needs, contact the brokers at Morison Insurance.
There are various factors that impact the cost of tenant insurance. Common factors include:
Reviewing these details with a broker ensures your insurance premiums are competitive while still providing full protection for tenants.
Since many factors impact your tenant insurance quote, you may wonder how to reduce costs. Common ways to save on tenant insurance include:
Your tenant insurance broker can provide additional savings options to ensure you have the proper protection for tenants at the best rate.
The best tenant insurance in Ontario depends on your coverage needs and budget. Some tenant insurance companies focus on affordability, while others specialize in higher-value protection. Working with an Ontario tenant insurance broker ensures you compare multiple options and coverage options to find the best tenant insurance policy for your situation.
Yes. A tenant insurance broker in Ontario has access to several tenant insurance companies. This allows them to compare types of coverage, coverage options, and insurance premiums on your behalf, making it easier to find the most competitive policy.
You can contact Morison Insurance to request a tenants insurance quote today. We are a top-rated insurance brokerage that offers tenants insurance throughout Ontario. Get the financial protection you deserve by filling out the form on our website or calling 1-800-463-8074.
