Why You Need Extra Rail InsuranceNovember 28, 2017
Why You Need Renters Insurance
Are you renting an apartment, house, condo, or any other property that you do not own? If so, you need renters insurance. Also known as tenant insurance or apartment insurance, this type of coverage protects you and your possessions from potential catastrophe. Many Canadian tenants are vulnerable by not obtaining renters insurance.
Indeed, Statistics Canada indicates that less than 50% of all tenants across Canada don’t currently have renters insurance. In some cases, these individuals might just be postponing the purchase of tenant coverage. In other cases, they may misunderstand what a landlord’s property insurance policy covers.
Either way, not having renters insurance as a renter in Canada is a significant risk. Here are a few reasons why.
Your landlord’s policy doesn’t cover your belongings
When you buy a home, you get homeowner’s insurance. This kind of policy protects both the physical structure of your residence and the belongings within. As a renter, you aren’t responsible for insuring the structure itself. Whether the rental is in an apartment building or a full house, your landlord likely has the policy to cover the physical structure. This policy should also extend to large items such as the boiler and appliances. What the landlord’s policy won’t cover, though, is your personal belongings. Living in a rental property without tenant insurance means you have no protection for your furniture, electronics, jewellery or other valuables. A renters insurance policy will protect these items in case of fire, flooding, or other disasters.
You need liability insurance
Any plans for having guests in your rental? Do you have a pet—especially a dog? Do you need to call an electrician or plumber for a repair? You need liability insurance. If someone gets hurt in or near your home you are technically responsible. It doesn’t matter if the injury is the result of slipping and falling on the kitchen floor or getting bitten by the dog. You could face a lawsuit for the injury. Renters insurance includes liability coverage, which shields you from legal costs, medical costs, and other related expenses.
You need a backup plan
Say a fire sweeps through your rental house and destroys many of your possessions. Without renters insurance, you would have to pay to replace your possessions and find a new place to live. At the very least, you’d need a place to stay while the landlord has the house repaired. Tenant insurance includes coverage for alternative living expenses in the case of a fire or similar disaster.
Are you convinced that you need renters insurance?
If you know it’s time to protect yourself and your belongings, Guild Insurance Brokers & HMS Insurance Agencies can help. From students to young adults and young families, we have helped countless clients be smart about their property rentals. If you are interested in working with us to set up your renter’s insurance policy, get in touch. To get started, click the “Buy Now” button to purchase your policy online or visit our tenant insurance page to get more information.
Our team of insurance professionals are always here to help find the right insurance for you. Send us an email, check out “The Blog”, or give us a call to chat with one of our professionals.