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!