Do I Need Renters Insurance?

Do I need Renters Insurance? Most lease or rental agreements have a provision that advises the Tenant to carry Renters Insurance to protect the tenant from any loss or damage. But statistics show that less than half of renters in Canada (42%) have Renters or Tenants Insurance.

In addition to covering the replacement cost of renters’ personal property and legal costs from lawsuits. Tenants insurance also includes an additional living expense coverage which pays a portion of your expenses incurred during repairs. Protecting the tenant and landlord with proper insurance is a smart purchase for peace of mind. Below we have listed 10 more reasons why Tenants should carry Renters Insurance.

1. If your property catches fire through no fault of your own, the landlord’s insurance coverage will not protect your personal belongings or expenses. Without the proper Tenants Insurance policy, who would they come after in this type of loss?
2. If you cause your neighbour to suffer a loss, and someone is hurt or property damage, Renters Insurance will provide compensation to the injured party. Without this coverage who might the neighbours come after if they have no other protection?
3. The upgrades you may have made on your rental dwelling are not covered by your landlord’s insurance policy. For example, if you have made upgrades to your walk-in closet and it is damaged in the event of a fire don’t expect to be compensated by your landlord’s policy. Only your Renters Insurance policy can provide that coverage for you.
4. If you are sued for monetary damages for some other reason, and you haven’t done anything illegal, your Insurance company will provide liability insurance coverage.
5. Your landlord might require you to have Tenants Insurance. A growing number of landlords are starting to make it mandatory for their tenants to carry a Renters Insurance Policy and expect to see proof.
6. Personal property coverage (less the deductible) while you’re away from home, in your car, or when travelling.
7. Computers, PS4’s, Xboxes, Electronics and more are costly to replace. We all have them. Your Renter’s Insurance Policy can protect them.
8. It gives you peace of mind knowing that should you have a loss you will have the funds available to replace your personal property as well as additional living expenses incurred during repairs.
9. Having Tenants Insurance is considered wise and responsible but more importantly…….
10. It’s relatively inexpensive and easy to obtain a policy. A typical policy covering up to $40,000 in property and $1 million in liability coverage can cost up to $23/mth.