What is tenant insurance in Canada?

What is tenant insurance and why is it so important?

Tenants’ insurance covers the personal belongings of tenants. It protects you against civil liability and loss or damage to your personal belongings. What’s more, it protects you from unforeseen events such as theft, vandalism, water damage and fire. Finally, tenant insurance includes coverage for additional living expenses, if you have to leave your home temporarily following a covered loss.

Examples of personal belongings covered are :

• Clothing
• Furniture
• Jewelry or other valuables
• Entertainment equipment
• Books

In short, tenant’s insurance is important because it protects your personal belongings in many situations, including civil liability. Your personal belongings are not covered by your landlord’s insurance. Your landlord’s home insurance only covers the physical structure of the building, not the goods inside.

What is covered by tenant’s insurance?

Renter’s insurance covers your personal belongings against theft, vandalism and other property damage. In addition, natural disasters and other unexpected events, such as fire, water damage, and subsidence, are also covered. Renter’s insurance coverage also applies to your personal property when you’re temporarily away. For example, when you go on a vacation trip.

Tenants’ insurance covers the following items:

• Accidental damage (standard coverage): This coverage protects you against accidental damage to someone else’s property.
• Civil liability (standard protection): This coverage protects you against legal action in the event of injury to someone on your property or the property of others.
• Additional living cost (standard coverage): If you have to temporarily leave your apartment or rental home because it becomes uninhabitable following a covered loss, your insurance covers all or part of your living expenses (e.g. hotel accommodation, food, etc.).
• Water damage (additional protection): This coverage protects you against damage related to water. For example: sewer backup (floor drain, septic tank, etc.), surface water (rain and snow) and above-ground water (roof and window).
• Identity theft (additional protection): This coverage protects you in the event of identity theft and fraud, covering legal fees and the recovery of your identity.

For each of these coverages, whether standard or supplementary, conditions and limits apply. What’s more, the losses covered may differ from one insurance company to another (e.g. earthquakes, windstorms, sewer backups, landslides, river overflows). Check with your insurer.

What influences insurance premiums for an apartment or other rental property?

Renter’s insurance premiums vary from person to person, depending on a number of factors. For example:

• The type and location of your rental property
• The value of your physical assets
• Your personal claims history
• The additional coverage you add to your policy
• Security of your rental property (alarm system, smoke detectors, window locks, etc.)
• The deductible amount you have chosen
• The limits and conditions of your insurance policy

Do you need tenant’s insurance if you share an apartment?

Sharing a home with others is an issue when comparing and negotiating renter’s insurance coverage. In some cases, the insurance policy may only cover personal belongings in your room.

Inform your insurer if you live in shared accommodation and make sure you understand the conditions and limits that apply. If necessary, don’t hesitate to talk to an insurance agent or a property and casualty insurance broker like ClicAssure. He can answer any questions you may have about tenant insurance.

How can you reduce your tenant insurance premiums?

Here are our tips for reducing your tenant insurance premiums:

• Combine your insurance: You can combine your car and home insurance on the same policy and save. For example, you can save up to 15% when you combine your home and auto insurance with ClicAssure.
• Compare home insurance premiums online: you can use our home insurance comparator to get several home insurance quotes.
• Increase your insurance deductible: increasing your insurance deductible reduces your insurance premium.
• Pay your insurance premium in one lump sum: many insurance companies offer a discount when you pay your home insurance premium for the year in one lump sum.
• Maintain a good credit score: a good credit score confirms to the insurer that you are able to pay your premium on time. If so, authorize your insurer to run a credit check, which will save you money.
• Install an alarm system: a security system and an anti-theft alarm reduce the likelihood of damage and theft, which in turn leads to lower insurance premiums.

How do I buy tenant’s insurance?

Before buying or renewing your tenant insurance, take a few moments to compare several quotes.

That said, insurance is a complicated business. So don’t hesitate to ask the experts for advice. For example, you can contact a damage insurance broker like ClicAssure. They have access to several insurance companies and exclusive discounts. Hence, they can then present you with the best offer available on the market. On the other hand, an insurance agent only has access to the products of the insurance company he or she works for.

Bottom Line

Renter’s insurance is not legally required in Canada, but it does cover your personal belongings in the event of loss or damage. Before signing a lease, ask your landlord about his or her insurance coverage and whether he or she requires you to take out tenant’s insurance.

Finally, try our home insurance comparison tool to get multiple quotes and find the best tenant insurance policy for your needs.

Frequently asked questions about tenant insurance