Home insurance isn’t just for homeowners. Renter’s insurance is another name for tenant insurance and is a way for renters to protect their possessions when renting a home.
Although tenants insurance is not mandatory in Canada, your landlord may ask you to get insurance coverage when you rent from them. This is very common amongst landlords who rent out furnished homes.
Read further to learn what tenant’s insurance covers and how it protects renters from uncontrollable risks.
What is Tenants Insurance?
Tenant’s insurance is home contents insurance for renters and covers your possessions from theft or damage while you’re renting a home. Examples of your possessions include:
- Your clothes
- Entertainment equipment
Tenant’s insurance won’t cover the physical structure of the home or building, as the homeowner or landlord provides this coverage through their home insurance policy. The tenant’s insurance will also not cover any furniture or equipment provided by the landlord, as they will have it covered under their policy.
What Does Tenants Insurance Cover?
Tenant insurance coverage provides cover for your personal belongings from vandalism, theft, loss, and damage. In addition, common risks such as fires, storms, burst pipes, water damage, and subsidence will also be covered.
Coverage will not only apply to while you’re at home but will also apply to your possessions while you’re temporarily away, like when you go away on vacation.
Tenant’s insurance will also provide renters coverage for the following:
- Coverage for accidental damage, which is dependant on your policy
- Public liability for in the event someone gets injured while they are in your rental home
- Civil liability should you damage someone else’s property
- Should your home become uninhabitable after a fire or flood or any other covered loss, your insurance will provide you with a place to stay until you can move back in or cover any reasonably necessary additional living expenses.
- Coverage for food in the fridge or freezer and the power cuts out, or the fridge or freezer breaks down.
What Influences Your Insurance Premium Rates?
Your tenant’s insurance premium rates are dependant on several factors, including the following:
- The value of your possessions
- Where you live – some tenants have cheaper rates as they live in less risky areas
- Your claims history
- Optional extras that you want to be added to your policy
- The security of your rental home – alarm systems, window locks, fitted smoke alarms, etc.
- Increasing or decreasing your deductible
Do You Need Tenant's Insurance if You're Sharing a Home?
Sharing a home with someone can be difficult when you need to find insurance coverage for your belongings. There are two options available to you:
- A typical policy covering all of the sharers’ belongings: your belongings might only be covered if the damage or theft occurs from your room and not in the shared common areas. You can also expect to have more exclusions than a standard tenant’s insurance policy. Consider “association,” which means your insurance premium will increase if one of your housemates files a claim. These claims must be declared to insurers for five years should you ever get your insurance policy, resulting in higher premiums.
- a policy that covers your possessions in your room
You will need to inform your insurance provider that you’re in a shared home. They will likely want to know if your room’s door has a lock or not.
Tenant’s insurance is not compulsory in Canada, but it will provide coverage for your personal belongings in the event of loss or damage. Before you sign a rental contract, ask your landlord what insurance coverage they have and if they require you to get tenant’s insurance. And check our home insurance comparison tool to find the best home insurance policy corresponding to your needs.