Tenant Insurance
Low-Cost Peace of Mind. Get Yours Today!
Renting a property has its advantages; especially when it comes to upkeep and repairs. Generally, the landlord of the property handles these expenses, shouldering the financial burden of owning a property. But when it comes to property damage, many people misinterpret landlord responsibilities.
Thank you for reading this post, don't forget to subscribe!For example, did you know that in the event of a fire or flood in your unit, you are responsible for replacing your own property? According to the Insurance Bureau of Canada, many tenants get this wrong.It’s a common misconception that the landlord is on the hook for any property that sustains damage in a rental unit. And due to this misconception, many tenants fail to get the insurance coverage they need.In fact, as of 2020 in Canada, one study showed that 34.5% of renters did not have rental insurance. For those who don’t, when disaster strikes it can be devastating.
So why is tenant insurance so important?
Theft or Damage of Property
Whether it’s a flood in the basement or a fire in the kitchen, accidents happen. And crime is a fact of life; in 2019 in BC alone there were 28,759 break and entry offences.
In the event of an incident, you are responsible for replacing your broken or missing items. And for many tenants, the cost is higher than they may think. For those without insurance coverage, it can be a crushing financial blow.
If your unit sustains damage and you are at fault, you can be liable. And it happens; a pan catches fire on the stove or the washing machine floods.
Whatever the situation, the landlord can choose to file a lawsuit against you to pay for the damages. And if you don’t have insurance, paying that out of pocket can hurt.
Protect From Third-Party Lawsuits
Many renters don’t think about potential lawsuits; the chances of them happening are just pretty low. Yet there are so many things that could go wrong on your property, leading to a third-party lawsuit.
Most of us have people over to our homes. But did you know that in the event of an incident, you could be liable for damages if a guest sustains an injury?
Let’s say a friend is over and he or she trips over an area rug, breaking an arm in the fall. If they sue, you could be required to pay damages. Situations like this don’t happen often; but when they do if you’re not protected it can be life altering.
If you have tenant insurance, your policy covers the cost of any damages. Legal fees are also covered, and that includes paying a lawyer to represent you in court.
How Much Does Tenant Insurance Cost?
The average policy in British Colombia is $26.00 per month, which means affordable peace of mind. Several things can factor into the cost of coverage, including:
- The amount of coverage. The more property you own, the higher the premium can be.
- Your coverage levels. There are different coverage levels available beyond basic policies. Higher coverage can also mean a higher premium.
- Location: For those living in a high-crime neighbourhood, premiums may be higher.
- Building construction: Older buildings may present more risk than newer, non-combustible construction. If you live in a century home, you may need more coverage.
- Your deductible: A higher deductible generally means a lower premium, and vice versa.
- Claim History: As with most insurance policies, a history of claims can drive premiums up.
How Tenant Insurance
Protects You
Contents Insurance
In the case of an incident, contents insurance covers the cost of replacing any missing or damaged property.
Living Expenses
Helps cover expenses like moving costs, a hotel room and more if you have to leave your rental place while it is under repair.
Liability Claims
Helps protect you financially if you cause accidental damage to property not owned by you or unintentional bodily injury to others.
