Renter’s Insurance 101
According to Statistics Canada, less than half of renters in Canada have renter’s insurance1 (also known as tenant or contents insurance).
We often think of home insurance as protecting the big stuff—like pipes, appliances, and the physical structure of the home or building. If you are renting, your landlord may have his or her own insurance policy to cover these kinds of items. But their insurance will not cover your personal belongings, such as furniture, jewellery, or entertainment equipment. Your landlord’s insurance will also not protect you if someone is injured on your property.
That’s where renter’s insurance comes in. Renter’s insurance will help you replace these possessions in the event of a loss or damage due to a covered risk. Speak to an Advisor to see how we can tailor your insurance to fit your needs.
Let’s start by understanding the importance of liability insurance.
Accidents happen and sometimes those accidents can be quite costly.
For example, a candle in your apartment could cause a fire. If that candle affects other units, you may be deemed responsible to pay for damages to your rental unit.
Or, if someone trips and falls in your apartment, you could be held financially responsible for the cost of medical expenses and lost wages.
Liability insurance could protect you in the event of a lawsuit, and help you cover the cost of any damages.
Next you need to understand a few basic terms:
- All-Risk insures your building and contents for losses due to the widest range of perils (or risks), unless specifically excluded from your policy like intentional damage
- Personal Liability insurance protects you for unintentionally injuring someone or damaging their property and have to pay damages (example: someone has a slip and fall on your walkway, breaks his/her leg and now cannot work for a period of time)
- Contents Insurance covers your belongings (including when you travel) for losses resulting from the most common types of perils (or risks) up to a specified amount
- Replacement Cost Coverage means that the contents of your home are insured for the amount it costs to replace them without depreciation
- Additional Living Expenses Coverage will help you pay for reasonable and necessary expenses (like hotel and food costs) in the situation you are forced to leave your home following an insured peril (or risk) for a period of time
Find the home insurance coverage that best fits your needs
1Most renters skip home insurance. (2010, January 19). CBC News. Retrieved January 20, 2016, from http://www.cbc.ca/news/canada/ottawa/most-renters-skip-home-insurance-1.911039