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April 2, 2020
7 Myths About Tenants Insurance

Guild/HMS busts the 7 Myths About Tenants Insurance

7 Myths About Tenants Insurance

Homeowners and car owners know they need insurance, but most renters don’t bother with tenant insurance. In fact approx. half of all tenants in Canada don’t have insurance to cover their personal property or liability as reported by the Insurance Bureau of Canada.

Due to the fact that tenants aren’t legally obligated to carry tenants insurance, it isn’t a high priority on most people’s lists. Misconceptions on the cost to replace your personal property and not understanding your legal liability as a tenant seems to be the basis for these decisions.

Below we have tried to outline some of the most common myths about tenant insurance, and how knowing the facts could save you thousands of dollars.

Myth 1: It's not worth the time and costs too much money

Reality: Your Tenants Insurance policy can be purchased online with our DIY Tenants Insurance. After answering a few qualifying questions you will have the insurance coverage you require, paid for and emailed to you all in real-time. Our DIY Tenants Insurance process gives you the ability to purchase our policy online, with all the benefits of having a professional insurance broker at your side along the way and after the purchase.

The cost of the average DIY Tenants Insurance policy ranges from $15-$18 per month or $180-$220 per year.

Myth 2: I don't have that much stuff so I don't need tenant insurance

Reality: Most people don’t realize the value of the stuff they own. Furniture, clothing, electronics, sheets, dishes, skis, bikes, towels, kids toys…the cost to replace this list will be much higher than you think. The numbers start to add up really quickly once you start to calculate the costs of buying these items new.

A Tenants Insurance policy typically costs a few hundred dollars per year. In comparison to the tens of thousands, it takes to replace your stuff, having an insurance policy provides great value.

Myth 3: My landlords policy will cover me

Reality: This is, perhaps, one of the most common statements about Renters Insurance. There is a false belief out there that if you are renting a space — whether a house, condo or apartment that the owner of that property is going to take care of them if something happens to the building.

The truth of the matter is your landlord’s policy only covers damage to the building, not the tenant’s personal belongings. If you have proper Renters Insurance coverage you will be covered. However, if you are renting a property and are uninsured, those costs will come out of your own pocket.

Myth 4: I'm just a renter. Damage to my apartment isn't my responsibility

Reality: Another common myth is that, as a renter, any damage to the property or unintentional harm to a visitor of your home is not your responsibility. After all, you don’t own the property right?

Consider this scenario: If you accidentally left your tap running on your bathtub, which caused flooding to your unit and the someone below, it may be your responsibility to cover the damages, not the building owner. Damage deposits are not designed for these types of accidental damages. The tenant below and the building owner may pursue legal action.

Myth 5: It will never happen to me. I'll stay with friends or family if it does.

Reality: Nobody ever thinks it will happen to them — until it does. But when it does and you lose everything in a fire, you would be temporarily without a home.

Could you afford to furnish and rent a temporary home or stay in a hotel for several months? Where would you go? What if your friends and family had to evacuate as well? Would your ability to work be affected? Your pet? Your kids?

If you think of something like this happening from a personal view, it really brings into perspective how important additional living expense coverage is on your Renters Insurance policy. This coverage limit needs to factor in a long-term stay outside of your home as well as making sure you can get back on your feet as quickly as possible.

Myth 6: My landlord will reimburse me if I'm forced to move out temporarily.

Reality: If you had to move out while your unit is being repaired because of a fire or a water leak, the additional cost that comes with spending potentially months in a fully furnished apartment, or hotel is not the responsibility of your landlord. If you were uninsured you might be reliant on family, friends or charitable donations.

Your Renters Insurance policy provides the coverage you need to replace or repair your stuff lost or destroyed by water damage, windstorm, fire, smoke or theft.

Myth 7: The basic coverage I have will be ``Good Enough``

Reality: Some renters do have insurance, but do you have the right coverage limits to replace all your stuff?

Most people don’t have a detailed list of everything they own. We can provide you with resources to calculate the value of the stuff you own and figure out what coverage limits you need to replace or repair everything.

If $10,000 sounds like a lot of money, consider how many clothes you own and how much you pay for clothing. That same $10,000 won’t last long if you needed to replace all your clothes if you were to lose them all in a fire.

Myths Busted

Now that you have the facts, I’m sure you would agree that although every renter should have tenant insurance, not every tenant insurance policy is created equal. That’s why it is important to take the time to customize your tenant insurance policy for your needs. Build your policy using our DIY Tenants Insurance online platform, with the comfort of knowing that a Guild/HMS Insurance Broker has your back if the worst-case scenario does happen.