Ontario Tenants Insurance

Ontario Tenant Insurance 

At first glance, renting can appear a lot less risky than owning. Renting means you’re not on the hook for property damage. 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 possessions safe. This is where tenants' insurance comes from. 

What Is Tenant Insurance? 

Tenants insurance, protects a tenant's most valuable and vulnerable items. Additionally, it provides insurance coverage for a tenant's personal liability exposures, including protecting the tenant against various damages and liabilities. It can also include additional protection, including financial protection in the event of theft, accidental damage to the property or unintentional bodily harm on the premises. 

Who Needs Tenant Insurance? 

If you currently rent the space you live in, you should strongly consider tenant insurance. Without tenant insurance, you have no coverage in the event of your 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 the peace of mind that your dwelling and valuables are protected against common risks and that, in the event of a disaster, your additional living expenses are covered. 

Is Tenant Insurance Mandatory In Ontario? 

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 insurance coverage) 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 insurance protection for a tenant 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. 

How Much Tenant Insurance Do I Need? 

Tenants require adequate coverage to insure the value of their personal items and at least $1 million in personal liability coverage. Many insurance brokerages will recommend $2 million of liability as this coverage is relatively inexpensive and offers better protection in the event someone is seriously injured or hurt while visiting or staying at your property. Some other aspects you should ensure you are properly covered: 

• Take an inventory of your personal belongings: Take the time required to identify the personal items and property you have, along with their value, by creating a home inventory list, and taking photos of as many items as reasonably possible. When conducting your personal belonging inventory, it is recommended to create a list. Include all of your belongings, such as TVs, computers, laptops, speakers, game consoles, furniture, appliances, soft furnishings, instruments, jewelry, and any expensive art or collector's items. Don't forget to include any sports equipment – hockey equipment, bicycle(s), or other similar things – in your calculations. 

• Get help from a top-rated insurance broker: There are so many insurance providers to choose from, so don't forget to check online testimonials from Google or Facebook to ensure you are working with one of the best. An insurance broker will discuss your requirements and belongings with you and will determine how much tenant insurance you require. The value of some items, such as jewellery, may exceed standard limits on some tenants insurance policies. In instances like this, you may want to purchase additional coverages to be sure these items are protected. 
• Everyone’s needs are different: Each tenant has unique insurance needs. As an example, a tenants insurance package may look quite different for a family of five renting a 2,500 square foot home when compared to a single tenant who is staying in a 650 square foot condo on their own. Again, it all depends on how many personal belongings there are to insure and the value of these belongings. Make sure your tenants insurance policy meets your needs. Any highly rated insurance broker should be happy to help with this. 

What Does Tenant Insurance Cover? 

There are three primary elements covered by tenants insurance. The first is content coverage for personal items and belongings such as furniture, clothing, laptops, computers, TV's and other electronics, sports equipment, books, and similar items. The second is additional living expenses coverage in the event of a 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. 

Tenants Content Coverage 

As a tenant, contents insurance includes coverage for personal items and belongings such as TVs, computers, furniture, clothing, sports equipment, jewelry and other high-value items you own in your rented home or rented condominium. In the case of an insured loss, you are protected. Limits in your tenant insurance policy determine the limit of your coverage. When getting tenant insurance, it is very important to let your insurance broker or insurance provider know what belongings and contents you have. This will ensure your items are adequately insured and the coverage limits in your tenant insurance policy are appropriate for and tailored to you. 

Tenants Additional Living Expenses Coverage 

If 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, additional living expenses coverage will cover reasonable costs of lodging that you may incur until you move back in or find a new rental home. These specific terms are covered in a tenants insurance policy, so prior to opting in for your new tenant policy, ensure you have your insurance broker explain these details. 

Tenants Liability Coverage 

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 caused unintentional damage to another person’s property. If the injured person launches legal action, you will have protection as outlined in the policy. 

What Optional Coverages Can Tenant Insurance Provide? 

It is important to note that not all tenant insurance coverages are the same, as each is geared towards its specific tenant. This allows you to choose which optional coverages you would like to have added to your personalized coverage and which aren't up your alley. If you would like extra insurance on some of your most prized possessions, there are many ways to get affordable protection for them. 

Some of these optional coverages are below. However, this is not a complete list. To learn more about which coverage options are available to you, please speak with your Morison Insurance broker. 

Fine Art Coverage 

Fine arts insurance can cover a lot more than you would think at first. It's not just very fine expensive stuff like a Picasso or a replica of the Mona Lisa that you could protect (although these also count). Sculptures and statues can also be protected, as can antiques passed down from generations past. Rare memorabilia and collections can also be covered, meaning that almost anyone who has something designed to be impressively aesthetically pleasing can be covered. Fine arts insurance can either be added to your tenant's insurance policy or added as a stand-alone policy. 

If you would like to know more about what can be covered by Fine Art Insurance or learn which set-up is right for you, it is best to contact your Morison Insurance broker, as they will be happy to help you. 

Identity Theft Coverage 

In today's increasingly digital age, identity theft is becoming more and more common, and there is a higher and higher chance a cybercriminal will be able to help themselves to your credit card number, SIN and other important personal information. Luckily, identity theft insurance is there to protect you in case something like that happens. Having identity theft insurance as part of your tenant insurance policy will grant you a level of protection, reimbursing you for things like time spent off work to fight it, fees to restore your good name and credit score, and cover many similar costs. 

Jewellery Insurance 

Jewellery is often very expensive while also being quite exposed to risk. The small size of the jewelry makes it easy to misplace, and if you wear it in public, it could potentially get stolen or fall where it can't be found. Having jewellery insurance can help reimburse you in a worst-case scenario. It should also be noted that watch insurance and engagement ring insurance are also available for those who wish to have them. Regardless of whether you are adding to your tenant insurance or creating its own unique policy, you can get the type of coverage that you want. 

Musical Instrument Insurance 

If you have a musical instrument at home, it's likely one of your most prized possessions, as it is likely one of your favourite hobbies. Music can provide a fun way to channel your creativity, even if you have no plans of being the next Jimi Hendrix (although, best wishes if you do). However, a musical instrument can be expensive to replace, so you may want to protect it by adding musical instrument insurance to your tenant insurance policy. 

Photography Equipment Insurance 

Similar to music, photography can be a fun hobby, even if doing it as a full-time job doesn't interest you. However, cameras aren't cheap, and neither are extra lenses, lighting equipment, tripods, batteries and other equipment that helps you get the best shot possible. Photography equipment insurance can insure both the camera itself as well as anything else required to support your creative hobby. 

What Does Tenant Insurance Not Cover? 

Tenant insurance does not cover your personal items under certain circumstances, such as natural disasters like flooding, earthquakes, and sinkholes. In addition, tenant insurance will not cover the building where you rent your unit, as this insurance is the responsibility of the landlord. It's also important to know that contrary to a common tenants insurance myth, your landlord's insurance does not protect you as a tenant, so it's very important to have your own tenants insurance policy. 

Tenant Insurance Is Not Landlord Insurance 

The owner of the property will have insurance on the actual building, but their landlords insurance will not cover you as the tenant or occupier of the home for your personal property, such as your furniture, jewellery, clothing, etc. or for your personal liability. In the event of a loss, such as a fire, 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 cover additional living expenses of temporarily needing to live elsewhere. You also would not be covered if someone is injured on the property you are renting, and you are held responsible. That is why it is so important to have tenant insurance. 

How Much Does Tenant Insurance Cost? 

Tenant insurance coverage is considered to have an affordable price for the protection it provides. On average, a tenant insurance quote will be between $50 and $100 per month, although this amount does vary. Also, each insurance company will likely give you a different price, as they each prioritize different perils uniquely. Your tenant insurance quote is determined using many factors, including the following: 

• The location or postal code of where you are tenanting 
• Your insurance claims history 
• The age and condition of the building in which you moved 
• The level of coverage you desire, including extra coverages and policy limit 
• The size of your rental unit 
• Any safety precautions you and your landlord take to reduce risk 
• The number of occupants 
• The length of time the policyholder has been insured 

Please note that this is not a complete list of factors that could potentially limit your tenant insurance quote. If you would like to know more factors that could have an impact, it is recommended that you speak with your Morison Insurance broker. 

How Can I Lower The Cost Of Tenants Insurance? 

Since there are so many factors that could impact your tenant insurance quote, you will likely be wondering if there are enough under your control for you to lower the cost. Luckily, this is correct. Here are some ways you could do so: 

• Increase your deductible 
• Avoid making claims on small incidents to keep your claims history clean 
• Lower risk with alarm systems and other safety features 
• Bundle your tenants insurance and car insurance 
• Remain insured for longer, as those who have had insurance for longer have lower rates 

Please note that these are not the only ways in which you can lower your tenant insurance premium. You are advised to speak with your Morison Insurance broker for a list of other applicable discounts. 

Where Can I Get A Tenant Insurance Quote? 

You can contact Morison Insurance to request a tenants insurance quote today. We are a top-rated insurance brokerage that offers tenants insurance, as well as several other types of insurance, throughout the province of Ontario. Get the insurance coverage you deserve by filling out the form on our website or calling 1-800-463-8074. You'll be happy you did! 

This content is written by our Morison Insurance team. It is provided for general information only. Insurance needs differ from person to person, and this article is therefore not a substitute for professional advice about your individual insurance needs which can be obtained by speaking to one of our brokers.