Tenants insurance protects a tenant's personal belongings and treasured items, and additionally provides insurance coverage for a tenant's personal liability exposures. If a tenant is sued, the insurance policy will pay for the tenant's defence of the allegations and pay for any damages awarded to the injured party. A tenant insurance policy also provides the tenant with property insurance experience which can assist in additional savings when they are ready to purchase their first home and require insurance. For those tenants who have had a tenant policy for several years, they could qualify for a claims-free or loyalty discount.
Tenants insurance covers a tenant of a property against various damages and liabilities. This type of policy can also include additional protection, including financial protection in the event of theft of belongings, accidental damage to the property or unintentional bodily harm on the premises.
If you currently rent the space in which you live, 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. Tenant insurance provides you with the peace of mind that your dwelling and valuables are protected against common risks.
DID YOU KNOW? According to Statistics Canada, 32% of Canada's population rents their dwelling?
Tenants insurance is not required or mandatory in Ontario. That said, it is very common that landlords will require you have an in-force tenants insurance policy (with proper insurance coverage) before you are provided with the keys to move into your unit. The cost of tenants insurance is very reasonable given that it covers your belongings, provides coverage if you need to live elsewhere after a significant loss, and protects you in case of a liability issue.
Remember: no tenants insurance means no insurance protection for a tenant. The tenant will have to cover the costs of the loss entirely if they do not have tenant insurance and there is a loss.
Tenants require enough tenant insurance to cover 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:
There are three primary elements covered by tenants insurance: contents coverage for personal items and belongings such as furniture, clothing, laptops, computers, TV's and other electronics, sports equipment, books, etc. additional living expenses coverage in the event of a loss and you are unable to reside in the unit until repairs are finished, and liability coverage in case someone is injured while in your home.
Tenants insurance does not cover your personal items under certain circumstances, such as natural disasters like flooding, earthquakes, and sinkholes. In addition, tenants 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 your landlord's insurance does not protect you as a tenant, so it's very important to have your own tenants insurance policy.
DID YOU KNOW? According to the Insurance Bureau of Canada (IBC) only 50% of Ontarians who rent have tenant insurance.
The owner of the property will have insurance on the actual building, but their 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. That is why it is so important to have tenant insurance.
Tenant insurance is considered to be quite inexpensive for the coverage it provides. On average, tenants insurance will cost you between $16 and $66 per month (or $200 to $800 per year). The insurance rate is determined using many factors, the location or postal code of where you are tenanting, your claims history, and the age and condition of the building in which you moved. The tenant policy will cover your personal property and additional living expenses you may incur due to a loss in which you are forced out of your rental property.
Tenants insurance will generally cost less if you bundle (combine) it with a car insurance policy. By adding a tenants policy to your auto insurance it will oftentimes save you even more money on both your auto and tenants insurance. The potential savings on your car policy through a multi-line insurance discount can possibly pay for the entire annual cost of your tenant policy. For all of these reasons, tenant insurance is generally considered a very affordable protection in the insurance industry.
You can contact Morison Insurance to request a tenants insurance quote today. We are a top-rated insurance brokerage that specializes in tenants insurance throughout the province of Ontario. Get started by filling out the form on our website or by 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.