What is Tenant Insurance?
Home insurance isn’t just for homeowners. It’s a savvy way for renters to protect their investment as well. You may have heard of tenant insurance being referred to as renter's insurance. Keep in mind that tenant insurance is the same as renter's insurance – these terms are often used interchangeably.
Tenant Insurance for Renters Explained
We often think of home insurance as protecting against the loss or damage of the big stuff—like pipes, appliances, and the physical structure of a home or building. If you’re renting, your landlord may have their own insurance policy to cover these kinds of items, but their insurance won’t cover your personal belongings, like furniture, entertainment equipment, or jewellery - like that expensive watch you got for your birthday
Depending on the circumstances, the landlord’s insurance may not protect you if someone is injured in your home. Also, if you were found to be liable for damages to the building the landlord’s insurance company could sue you to recover the cost of repairing or rebuilding the structure. Tenant insurance can offer you financial protection in these cases and more.
What Does Tenant Insurance for Renters Cover?
Tenant insurance could cover your belongings against common risks such as theft, fire, loss and much more. It's an easy and affordable way to protect your investment in your personal property. Coverage applies to your belongings that are both in your home and temporarily away, such as when you go on vacation. If your home becomes unlivable due to a covered loss, tenant insurance will cover any necessary and reasonable additional living expenses until you can move back in or find another place to live.
Coverage for personal liability may provide financial protection should you be sued for accidently injuring someone or damaging someone else's property. Liability protection is often your best line of defense if you’re named in a lawsuit or considered personally responsible for unintentional bodily injury or property damage.
Do All Renters Need Tenant Insurance?
Although it's not mandatory to have tenant insurance if you're a renter, it could help you cover expenses that come up accidentally or unexpectedly from a covered loss. You may not realize how costly it may be to repair or replace your damaged items and how relatively inexpensive it could be to have tenant insurance.
Here are some frequently used tenant insurance terms that are worth knowing:
- All-Risk insurance covers your belongings for losses caused by a wide range of risks (or perils) aside from some explicitly mentioned exclusions in the policy.
- Personal Liability insurance coverage protects you if someone is unintentionally injured in your home, or if you've damaged someone else's property and now have to pay for damages.
- Replacement Cost means that in the event of a covered claim, items will be repaired to their original condition or replaced with new items of like kind and quality with no deduction for depreciation.
- Additional Living Expenses Coverage will help you pay for additional costs that are both necessary (like hotel and food costs) and reasonable in a situation where you are forced to leave your home following a covered loss.
What Factors Affect the Cost of Tenant Insurance Rates?
Tenant insurance doesn’t come at a fixed rate for everyone. In fact, premiums will differ per renter based on multiple factors, including but not limited to:
- Your credit score (province dependent).
- The amount of contents coverage you require – from big-ticket items to less costly belongings, you'll want to ensure your selected contents limit is enough to cover all your belongings in the event of a total loss.
- The location of your home (typically determined by postal code).
- The construction of your unit (e.g., concrete high rise, wood frames, etc.).
- The deductible chosen – a higher deductible usually results in lower premiums, but you'll have to pay more out of pocket if filing a claim; a lower deductible usually results in a higher premium, but you'll be paying less out of pocket if filing a claim. Choose your deductible based on what you can afford to take out for unexpected repairs.
- Whether you have some form of a home security system.
- Your claims history – being claims-free can help benefit your premiums.
How Can I Get Cheap Tenant Insurance?
We know with rent being so costly, you may be on the lookout for cheap rental insurance options to help manage your budget. But keep in mind: cheaper doesn't necessarily mean better. Cheap renter's insurance may cost you less at the time; however, it may compromise your coverage limit which can cost you more in the long run. Instead, look for affordable rental insurance options that balance your coverage and budget needs.
While the cost of rental insurance will vary by tenant, there are multiple ways to save on your tenant insurance policy to make it more affordable for you. Here are some ways you can save with TD Insurance:
- Buy online and you could save 5% on tenant insurance in your first policy term.‡
- Bundle your tenant and car insurance policy together.
- Take advantage of alumni & professional preferred rates.
- Consider purchasing a home security system.
Tenant Insurance Offered by TD Insurance
We also offer different coverage options depending on your unique needs. If you're a student renting a home with other students, you may want to get specific tenant's insurance for students to protect your laptop, textbooks and other personal belongings.
No matter what your specific needs are, and whether you're an existing TD Insurance customer or are just looking to get started, we can also help guide you through any questions you might have about tenant insurance. Get in touch with a TD Insurance Advisor today.
Or if you're looking to get started with your free tenant insurance quote, you can get a quote in just minutes.