Everything you need to know about tenant insurance
There are two kinds of renters in Canada – those who have tenants insurance and those who don't. According to a recent study conducted by Substance Strategies, more than half (53 per cent) of tenants in Canada are the kind that go uninsured. So what is causing this risk-taking phenomenon? It seems to be a lack of awareness. Below are the top four important things you need to know on this topic:
1. Your landlord doesn't cover all risks and damages. The landlord has insurance on what they own — the building itself and nothing more. You are responsible for your own property and the contents of your apartment. If an unfortunate mishap occurs and you don't have tenant insurance, your landlord's policy won't cover your 60” television, and you'll end up having to watch your favourite show on your smartphone.
2. Liability is key. As a tenant, you're most likely going to be financially responsible for any damage you cause, even if it's accidental. The extent of civil liability is an important factor when considering what you are responsible for and if you are able to cover it out of pocket.
3. Your stuff is worth more than you think. What's interesting about insurance is that your belongings are not insured based on sales cost, but on the replacement cost which factors in the retail value at the time of loss including possible inflation. So that television you bought on sale for $400 dollars reduced from $800 would be insured for the full $800 dollars. With that in mind, is there more in your house that you can't afford to lose?
4. Tenant insurance is surprisingly affordable. Forty per cent of Canadians believe they don't have the means to pay for tenant insurance, but based on current minimum premiums, tenant insurance can cost less than a restaurant meal each month. If you can skip the extra coffee each day, then you've saved up enough money to afford tenant insurance. Armed with this new knowledge about tenant insurance, you may want to consider getting a quick and simple quote from an insurance provider. Don't be the 53 per cent that go uninsured!
– News Canada