4 Reasons to Buy Tenant Insurance

As the price of real estate continue to skyrocket across a number of Canadian cities, many of us find ourselves renting our primary residences. As a renter, it is important to understand the various exposures you can face when occupying someone else’s space – let’s talk about it!

Here are 4 main reasons to buy tenant (renters) insurance:

1.      The lease agreement will require it

-         Almost all landlords, whether individuals or corporations, will have lease agreements that need to be signed before taking possession of the space. Inside these contracts are insurance requirements, which will be required to be fulfilled prior to getting the keys. Usually, the agreement will specify an amount of liability that needs to be purchased (which is all they care about), such as 1, 2 or 3 million in protection. There might be some other items in there, like upgrades, that will need insuring – be sure to chat with an Alteri agent and ensure the right protection is in place.

2.      It will insure all of your personal property

-         Tenants’ insurance allows you to add a ‘contents’ limit to the policy, which is a dollar value that you place on all of your items. Your belongings, such as your furniture, clothing, Jewellery, Bicycles, etc. are all eligible assets that can be insured under the policy. If there was an insurable loss (like a fire, flood or theft) these items can be replaced under insurance. Note that certain items should be scheduled on the policy to add further protection. This will add additional premium, but it will single-out the special (and often high-value) items.

3.      You can be liable for bodily injury or property damage

-         These policies provide liability insurance, which extends protection to renters in the event they are named in a lawsuit for bodily injury or property damage. If, for example, you are responsible for leaving the tap running and causing damage to your neighbor below, then your liability coverage would kick in. The same applies for bodily injury. Let’s say you have a get-together and someone hurts themselves in your space – this protection gives you the peace of mind that might be needed. This coverage is global, so you do not need to be blamed for something relating to your rented space – it can be from anywhere at any time. Get into trouble while visiting Ireland? No worries. You can claim on your renter’s policy.

4.      Additional living expenses

-         Sometimes bad things happen, and they are completely out of our control. If the worst happens, and there is a major incident at your primary residence (which makes it uninhabitable), then your policy can cover your additional expenses that you wouldn’t have otherwise encountered. Whether your home or apartment building experiences a fire or a flood, or maybe even an earthquake, you may need to re-locate until the repairs are completed and the space become re-inhabitable. During this time, you might have to rent a more expensive space, rent a moving company, pay for taxi’s, etc. All of these unexpected and additional expenses would be eligible for coverage under your policy.

Looking for advice and more information on tenant’s insurance? Speak with one of our team members, or email us at info@alteri.ca!