As a renter, it’s essential to be prepared for the unexpected. Tenant insurance is one way to feel peace of mind, knowing you have coverage for things that are out of your control, like accidents or emergencies. This guide reviews what tenant coverage is for, how it works, and how to determine what policy you need.
Understanding Tenant Insurance
Regardless of the type of rental property you live in, mishaps can happen at any time. This risk is increased in places like apartment complexes, where tenants live in close proximity to their neighbours.
Tenant insurance has the same purpose as homeowner’s insurance: It provides coverage for renters in specific situations, like fire, theft, flooding, liability, or other scenarios.
Purpose of Tenant Insurance
There are different reasons to obtain tenant insurance in Ottawa. One is to protect your property in the event of an accident or disaster, and the second is to cover any financial liability if someone else is injured while in your home. This type of insurance isn’t mandatory in Ottawa, but your landlord may require it as a provision of your lease.
Before you purchase coverage, take the time to review the types of coverage that exist and the benefits of each.
What Does Tenant Insurance Cover?
In the event of unforeseen events happening to you or your guests, tenant insurance may cover the following:
- Repairs to your home
- The cost of replacing furniture, electronics and other personal items
- Financial costs incurred if you’re forced to move out from your unit due to it being rendered uninhabitable
- Protection in the event you’re deemed personally liable for someone else’s injuries
Financial Protection for Renters
While it makes perfect sense that homeowners would want to purchase coverage to protect their property, renters often wonder why they should insure something they don’t own. The reality is that while you don’t own the rental unit, you still own your personal belongings inside your space—and these need to be protected.
Liability Coverage: Why It’s Crucial
If someone gets injured in your unit, they may be able to pursue legal action against your landlord and you directly. If an argument can be made that you were negligent in your responsibility to maintain a safe environment, liability coverage can help cover the amount you owe.
Protecting Belongings and Loss of Use
You may not own the property you’re renting, but replacing your belongings can be stressful and expensive. Most people don’t realize how much money they’ve invested in their furniture, electronics and other belongings until they take a detailed inventory. If you were forced to live somewhere else due to an accident, it’s also important to have coverage—needing to move for something out of your control shouldn’t ruin you financially.
Choosing the Right Policy
When you’re comparing policies, it’s important that you review any requirements your landlord has for coverage and assess the value of your belongings. This ensures you know how much liability and property coverage you should shop for. If you’re unsure where to begin when shopping around, enlisting the help of an insurance broker can save you time and effort.
Get Tenant Insurance Today
Getting insured is the best way to ensure you don’t leave yourself open to devastating financial losses while renting. That’s where we come in at Rowat Insurance. Contact us today to find the right tenant insurance coverage for your unique needs.