Pros & Cons of Tenants Insurance
May 20, 2021
Owners have Home Insurance … but what if you a renter?
Unlike auto insurance, tenant insurance is not mandatory, but there are some good reasons to have a policy to safeguard yourself and belongings.
Getting Tenants Insurance can be a smart choice. The monthly cost can be under approximately $20.00 per month depending on your claim history and a few other factors. Your monthly premiums will depend on factors like how much you have to insure, where you're living, your claims history and the amount of the deductible. If you have expensive bikes, jewelry or collectibles you may also pay more with an insurance rider or higher premium. The best advice is to shop around and check the policy carefully.
“Tenants” insurance covers “contents” like your TV, Laptop, couch or bed if they are stolen or damaged. “Liability” insurance covers a guest that injure’s themselves in your space and decide to take legal action against you and "Additional Living Expenses” which pays for you to live elsewhere if you can’t live in your rented space due to peril like a flood or fire.
These are unprecedented times and with certain things that could happen, it could leave you with a loss of what to do and where to stay, so it’s a very big plus to have!
Many landlords now require it as a condition of their lease. Under paragraph 11 of the Ontario Residential Tenancy Agreement (Standard Form of Lease) the Landlord can check off a selection that states “The tenant must have liability insurance at all times. If the landlord asks for proof of coverage, the tenant must provide it. It is up to the tenant to get contents insurance if they want it.“.
Some tenants might think their landlord's insurance will cover their belongings if there is a loss, but that's not the case. Just because you’re paying rent to a landlord you're not covered under their policy. None of your contents or your well being is covered under their insurance.
The bottom line is to make sure you understand your policy … what's covered and what's not.
Whether it's tenant or home insurance you should have an inventory of all your belongings. The easiest way is to take photos or video, but it's preferred to have a detailed list with model numbers and receipts and it should be updated and kept in a safe place.
Check out RateHub.ca to get an online quote today on your Tenants Insurance.
The Renting Toronto Team