You found yourself a new apartment! Your landlord has their own Insurance for the building, but there’s a clause in your contract requiring you to have Tenant Insurance. Why is this the case, and what does it cover? As a renter, here’s what you need to know about Tenant Insurance in Ontario.
Tenant Insurance as a Renter Explained
When we think of insurance for a residence, the first thing that typically comes to mind is protecting the physical structure from damage by extreme weather. Your landlord’s Insurance policy covers the roof, foundation, windows, pipes, etc. Tenant Insurance, on the other hand, protects your personal belongings.
What Does Tenant Insurance Cover?
Tenant insurance covers your personal belongings from common threats such as theft, fire, and more. It’s a wise and affordable investment for your property. Coverage for your belongings applies when they’re in your apartment or temporarily away with you at work or on vacation.
Do You Need Tenant Insurance?
Tenant Insurance isn’t mandatory, but some landlords may insist on it. Regardless, it’s affordable and a smart, worthwhile investment. While Tenant Insurance is inexpensive, the cost to repair or replace your damaged/stolen items could be just the opposite.
What Affects Your Tenant Insurance Rate?
Premiums will vary depending on many factors relating to you and the dwelling. Some of the variables include:
- Your claims history, being claims-free can benefit
- If you have a home security system
- The type of building you live in. For example, a high-rise versus a single-family home
- Your home’s location
- The amount of coverage you purchase
Frequently Used Tenant Insurance Terms
- Replacement Cost: If your claim is covered, items will be repaired to their original condition or replaced with a new item of equal value.
- All-Risk: Your belongings are covered from a wide range of circumstances, apart from exclusions mentioned explicitly in your policy.
- Personal Liability: If someone is unintentionally injured in your home, you are covered. Coverage is also provided if you’re required to pay for someone else’s property that you damaged.
- Additional Living Expenses Coverage: If you have to leave your home following a covered event, a Tenant’s policy will pay for some of the additional costs you may incur (such as food and hotel).
Whether you’re in a basement apartment or an entire house, if you’re paying rent, you can benefit from Tenant Insurance (sometimes called Renter’s Insurance).
Get in touch with one of our Agents or Brokers to keep your belongings protected.