My landlord already has insurance. Why do I need my own policy? While that’s true, your landlord’s plan has its limitations–it usually doesn’t cover your own belongings and personal liability, both of which are essential, whatever type of homeowner you are.
Tenant insurance offers you protection in the event of unexpected events and expenses. In this article, we’ll talk about what tenant insurance is, what it covers, and why it’s important to have it, among other basic things you need to know about this type of policy.
What Is Tenant Insurance?
Also known as ‘renter’s insurance,’ tenant insurance is a type of policy designed for people who rent their space. It provides additional protection on top of a landlord’s existing policy, covering gaps that aren’t often included, such as personal belongings and liability.
What Does Tenant Insurance Cover?
Tenant insurance generally covers the protection of your personal belongings against common risks such as theft and fire. Depending on your policy, this could also extend to items that are temporarily taken out of your home, such as a bike or a laptop. In the event that your rented property is damaged, your insurance may also cover additional living expenses, so you don’t have to pay out of pocket for hotels or meals while you live elsewhere as it’s repaired.
Tenant insurance also usually includes personal liability coverage, in which you can get financial aid to cover things like medical or legal fees in case someone is injured within your rented space. It’s important to note that coverage varies per policy and insurance provider, so you must carefully review your options and communicate with your insurance company to ensure that you have adequate protection.
Why Do I Need Tenant Insurance?
As a tenant, you’re legally responsible for any damage you cause to your rented property or the building and those who live in it or visit it, even if it’s unintentional. Tenant insurance can ease these obligations financially.
For example, if you accidentally start a fire that damages your next-door neighbor's apartment or you have a visitor who slips and falls in your space, you may be held responsible for paying the damages caused. Your tenant insurance can cover some, if not all, of these expenses.
Additionally, some landlords in Canada require tenants to have tenant insurance as part of their lease agreement, so it’s best to have it to ensure that you can lock in the space that you want.
How Much Does Tenant Insurance Cost?
The cost of tenant insurance varies based on several factors, including the amount of coverage you need, your location, and the insurance provider you choose. That said, it’s typically affordable, with policies available for around $20 to $30 a month.
Finding the Right Tenant Insurance Policy
When getting a tenant insurance policy, it’s important to compare quotes from different providers and choose based on the coverage that you need and the budget that you can afford to pay each month.
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