5 Things You Should Know About Tenant Insurance
From safeguarding your belongings to protecting you from a lawsuit, renters insurance has many benefits
Renters, it seems, like to the roll the dice; many Canadian tenants reportedly don’t carry home insurance.
“They are taking a risk,” says Kirstie Horrocks-Cutler, a property insurance expert with CAA.
She recommends that all tenants have insurance—and here’s why.
1. You Need to Protect your Belongings
Some tenants don’t even think about insurance when living in a rental space—but that’s a mistake, says Horrocks-Cutler. Everything from a fire to a burst pipe can damage your personal property. Tenant insurance will pay to repair or replace those belongings, safeguarding your hard-earned investments.
2. It Could Keep a Roof Over Your Head
If something does happen and you’re forced from your home, many policies, including those from CAA, will pay for temporary accommodations. That means if a pipe in your bathroom bursts, you won’t be forced to bunk with family.
3. It Covers Things Your Landlord’s Policy Doesn’t
Many renters mistakenly believe that because their landlord has insurance, they don’t need coverage. But a landlord’s policy only covers damage to the building—not your personal property, says Horrocks-Cutler. Only tenant’s insurance will replace your belongings if the worst were to happen.
4. Renters Are Still at Serious Financial Risk
As a tenant, you are responsible for any havoc you inadvertently wreak. Case in point: if you let the bathtub overflow and the water seeps into the apartment below you, destroying the ceiling and shorting out your neighbour’s new flatscreen, you could be facing a hefty repair bill. Tenants insurance, though, would cover that damage, says Horrocks-Cutler. “[Some tenants] they think that because they only have $5,000 worth of property, they don’t have to have coverage. But it’s not just about their contents, it’s about their liability exposure.”
5. It Could Ease the Pain of a Potential Lawsuit
Customers with multiple CAA policies, like home and auto insurance, for example, also receive complimentary legal defence coverage. That means if they do get sued for damaging their unit or someone else’s property, insurance will pay their lawyer’s fees, which can reach into the tens of thousands of dollars. “It’s like having a lawyer on retainer,” says Horrocks-Cutler.
Protecting your personal belongings, including your auto, is in your best interest. If you’re shopping around for a new vehicle, click here to find out which cars are the best for insurance rates.