Tenant insurance allows renters to be protected in the same way that homeowners insurance does. The term renters insurance can be used interchangeably with tenant insurance. It offers financial security for a tenant’s possessions, liability for damage to the landlord’s property, and additional living costs if a fire, accident, or break-in renders the rental inhabitable.

If you’re renting a home, your landlord may have their insurance policy to cover expensive things like pipes, appliances, or the building itself, but this won’t protect your personal belongings, like furniture, clothes, gadgets, jewelry, etc., against loss or damage. Tenant insurance will offer you financial protection in these cases and more. Also, suppose you caused damage to your landlord’s property, even though the property is covered, your landlord’s insurance company could sue you or hold you liable to restore the damaged property.  It will also provide you with coverage for personal injury or property damage you are legally liable for anywhere in the world.

Why Do You Need Renter’s Insurance

The average renter’s insurance policy costs $15 to $30 a month in 2022 (latest figures), according to the Canadian Council of Insurance Regulators (CCIR)

• A renter’s insurance coverage will help you cover your personal property losses such as clothing, jewelry, baggage, computers, furniture, and electronics.
• Your Landlord may request it. A rising number of landlords are requiring tenants to obtain their own renter’s insurance policies.
• It covers your belongings while you are away on trips. You can rest assured that your possessions are covered from loss due to theft and other covered losses while you travel.
• In the worst case scenario, if an accident happens to your belongings or your landlord’s property, you can get peace of mind by repairing or replacing it.

What Does Tenant Insurance Cover?

Coverage for personal property

Personal property coverage is included in every standard tenant insurance policy. Your items will be covered if a qualifying occurrence causes them to be stolen, damaged, or destroyed. Most insurance companies view the following dangers as qualifying events:

-Damage brought on by electrical appliances’ short circuits
-Plumbing, heating, and air conditioning systems freeze
-Theft
-Lightening and fire
-Vandalism
-Explosions
-Damage caused by steam-heating or water-heating equipment or systems
-Falling objects

Liability/ Medical expenses

Your liability, which includes any harm or property damage you’re responsible for in your rented apartment or anywhere in the world, will also be covered by your tenant insurance policy. In the event that your visitor gets injured in your home accidentally, your tenant insurance will provide coverage for their medical costs up to a specified limit.

Replacement Cost

If you have purchased a policy with Replacement Cost Coverage items will be repaired to their original state or replaced with new items of similar type and quality in the case of a covered claim, with no deduction for depreciation.

Other Living Expenses

If your house becomes uninhabitable due to the covered risk, your tenant insurance will temporarily pay you to reside somewhere else, such as a nearby hotel. For example, if there is a fire at your apartment complex and the damage takes weeks to repair (limits may apply), your tenant insurance will reimburse you for the cost of your hotel room as well as any additional living expenses incurred.

What Isn’t Covered by Tenant Insurance?

Damage to your car is not covered

While items stolen from your parked car can be replaced by rental insurance, if you lose or damage your car itself, it can only be covered by your own auto insurance.

Damage caused by pests, like bed bugs, mice, or some dog breeds

Renters with dogs deemed “high-risk” by their insurance company are unlikely to receive liability coverage if the dog bites someone or causes property damage.

Major Damage to the Building

While tenant insurance will cover the expense of replacing a renter’s valuables in the event of a fire or flood, actual structural damage will often need to be addressed with the landlord’s commercial insurance provider.

Is Tenant Insurance Required in Canada?

In Canada, there is no legal requirement to have renter’s insurance. However, there are some compelling reasons to obtain insurance from a reliable insurer if you live in a furnished apartment. Landlords are liable for the structure and any fittings inside, as well as the contents of the rented home provided by them.
Some landlords may also request it to determine who to rent out their apartment to streamline their house leasing process.
When choosing a tenant insurance policy, consider the overall coverage amounts for personal asset coverage, third-party liability, voluntary medical expenses, and additional living costs.

How to Get Tenant Insurance

• Take a home inventory
• Select a policy
• Consider your insurance premiums

We Are The Help You Need

We at Colley Insurance provide several coverage choices based on your specific requirements. We can assist you with any inquiries you may have concerning tenant insurance, regardless of your individual needs, and whether you are an established Colley Insurance customer or are just getting started. Contact a Colley Insurance Advisor right away.

Or you can also get started with your free renter insurance quote, you can do so in minutes.

Get A Free Rental Insurance Quote

The above information is for descriptive purposes only.  In the event of a claim the coverage and exclusions in your insurance policy will apply.