What is Renter's Insurance? Do you need it for your apartment, condo or rental home? Here are some frequently asked questions to help you decide on whether it's right for you.
What is Renter's Insurance?
Renter's insurance or tenant's insurance is a type of insurance policy that's designed to protect tenants from liability, loss, or damage. It provides you with a financial safety net in case of an emergency and common risks (theft, fire) in your rented accommodation. It's an easy and affordable way to protect your investments in your personal property.
What Does Renter's Insurance Cover?
Tenant insurance covers very specific things, including the following:
1) Personal Property – Everything in your home is covered, including your furniture, appliances, electronics and valuables. As an added benefit, It also protects your belongings when you take them on your travels.
2) Living Expenses – If your home becomes unlivable because of damage, your tenant insurance policy will cover any necessary living expenses, up to your coverage limit.
3) Liability – If someone gets hurt or another unit is damaged because of you or your possessions, this portion of your policy will protect you against litigation and will cover the financial costs associated with the damage.
What Does Renter's Insurance Not Cover?
Renter's insurance does not cover your belongings under certain circumstances such as natural disasters like flooding, earthquakes, tsunamis, chemical contamination, sinkholes, etc. Renter's insurance also does not cover the rest of the building where you rent your unit – this is the responsibility of the landlord. It's also important to know your landlord's insurance does not protect YOU as a renter.
How Much Is Renter's Insurance?
The cost of your insurance policy is determined by a few factors, including the amount of coverage you select, what city you live in, the type of structure you live in (i.e. apartment, house, townhouse, condo), your insurance history and the insurance company you choose. On average it could be between $25 - $50 a month.
Is Renter's Insurance required in Canada?
There's currently no law in Canada that requires tenants to purchase renter's insurance. Most people choose to buy it for their sense of security and peace of mind. There are many benefits to having tenant insurance, so it's worth thoroughly investigating your options before you decide that it is or isn't for you