Did you know that according to Statistics Canada, 4.4 million households in Canada, or about 34 per cent, rent their homes?
Some of you may be wondering what tenant insurance is. Well that is easy, it is insurance for tenants to help with the replacement of belongs after loss due to theft, fire or water damage. It also protects you in case of liability should someone get hurt or his or her property gets damaged.
Since I first moved out on my own and started renting I have been paying renters insurance. At first I decided it was a good investment because I was renting a split home where I found out a few months in that the tenant above me was a smoker and a drug addict. (Not a good situation.) I continued paying for renters insurance after I was out of that situation because it just made sense to have the protection, especially when it was literally costing less than a dollar a day.
There are 6 really good reasons for having tenant insurance:
1. Tenants are liable for any harm caused to any part of the building and to others who live or visit there. In other words, if your faulty toaster oven starts a fire that damages the apartment complex, without tenant insurance you could be on the hook for a lot of money.
2. Your possessions have value…even if you don’t think they do. Think about everything you own. Now imagine having to replace all those items at once, out of your own pocket. Even if you think you don’t have much personal property, it is likely worth more than you think. Your clothing alone could run you thousands of dollars. Although subject to some exclusions or limits, tenant’s insurance will help you recover your losses.
3. It protects you in the event of a lawsuit. Remember that faulty toaster oven? What if someone were to slip and fall in your apartment during a party? You could be held financially responsible for the cost of the injured person’s pain, suffering and medical bills.
4. It helps you cope with other needs after a loss. In the event you’re forced to leave your apartment while it’s being repaired, insurance pays for necessary expenses such as hotel stays, restaurant meals and moving costs, subject to some limits.
5. In some cases, tenant’s insurance may not cost a cent. Students are often covered under their parents’ home insurance policy. If you are a student and rent, be sure to double-check with your parents’ insurance provider to find out if this is the case.
6. Tenant’s insurance is very affordable. For the cost of a few coffees a month, you’ll have not only the protection you need, but also peace of mind. And that’s more than worth it. Statistics Canada says tenant households that bought insurance spent an average of $309 on it last year — less than half the amount spent by those who owned their homes.
Find out More information about Tenants Insurance Here
Disclosure: The opinions and language are all my own, and in no way do they reflect The Insurance Bureau of Canada.
Elizabeth Lampman is a coffee-fuelled Mom of 2 girls and lives in Hamilton, Ontario. She enjoys travelling, developing easy recipes, crafting, taking on diy projects, travelling and saving money!
Monday 10th of February 2020
Insurance is always good! When all parties of the rental transaction are properly covered in the transaction, the more all are covered. It is much better to have insurance companies all talking to each other than to be pulling out your wallet when bad things happen. Don't hope for the best, plan on the worst. Great article, thanks!
John W. Tiner
Saturday 26th of October 2019
Thank you so much for sharing this information! I always tells my property owners to require renter's insurance from tenants at the start of a tenancy. Like you said, it's affordable and easy to get. Plus, it will protect the property owner and their investment property in case something happens. The last thing you want to do is have to hassle with insurance companies about who is to cover what expenses in the midst of an emergency. And your tenants don't want to deal with it either. Thanks again for sharing!
Wednesday 23rd of October 2019
Thanks for this insight! I agree that all tenants should have renter's insurance. For the small investment that it is, it comes in handy should the unthinkable happen. I always tell my property owners that they should require their tenants to have renter's insurance before leasing a property. Not only does it protect tenants, it protects investment property owners too. After all, if something happens to your tenants while they're leasing your rental, your homeowner's insurance might have to kick in and pay up for damage, housing, and/or injuries. While this still may be true depending on the situation, when there's renter's insurance in place, it can at least lessen the financial burden.
Sunday 21st of July 2019
Thank you for shedding light on the importance of renter's insurance. It's so important for both property owners and tenants to require renter's insurance. Landlords don't want to be responsible for their tenant's personal belongings, and tenants don't want the hassle of having to fight their landlord for compensation should anything happen. I'd like to add that proper tenant screening can help decrease your chances of ever having to deal with a situation that involves your respective insurance companies. The better your tenants, the less likely a careless mistake is going to happen. Thanks again for sharing!
Tuesday 4th of October 2016
I truly believe that all tenants should make the minor investment in renter's insurance for all of the reasons you mentioned above. In fact, it is often recommended that all property owners and their respective property management companies require tenants to obtain renter's insurance before moving in. That way everyone is protected - the tenant and their possessions, as well as the property owners from potentially costly lawsuits against their own building insurance policies.