How much is tenant insurance in Canada? If you rent out your home, you may think you don’t need insurance because your landlord has to cover you. However, the landlord’s liability insurance does not cover your liability insurance, your property, or some types of damage. This could result in you paying out of pocket if there is a problem.
Did you know that almost 50% of Canadian renters do not have renters insurance? If you want to protect yourself, you need renters liability insurance.
It is inexpensive and protects your property. This page answers all your questions and explains what renters insurance is, how much is tenant insurance cost in Canada, how it works and who the best providers are.
What Is Tenant Insurance?
Tenant insurance, also known as tenant insurance, covers theft and damage to the personal belongings of a person renting a house or apartment. It also provides them with personal liability insurance, which means they are financially protected if they accidentally cause property damage or personal injury to someone else. The aspect of personal liability insurance is often overlooked by potential buyers, but it is valuable. It can save them a hefty severance package if a guest is injured in the house.
Plus, it’s a smart way to make sure your belongings are safe. This includes items such as your furniture, televisions, clothing, books, electronics, and jewelry against theft and damage due to fire, burst pipes, and more.
The tenant’s insurance does not cover the building or the furnishings such as central heating, sanitary or electrical installations. Nor does it extend to furniture or equipment made available by the lessor. This sets it apart from other types of home insurance that cover property, liability, and the property itself.
Do I need renters insurance?
Unless required by your landlord, renters insurance is optional. If you have valuables, renters insurance can provide security and allow you to replace them.
Landlords may have building-only policies that don’t cover much other than the physical structure of the home. Even if they have home insurance, it will only cover items in the unit they own, such as appliances or furniture.
It’s worth asking what your landlord’s policy says. It can cover emergency shelter for you in a crisis, and it can also cover accidental damage.
How Much Is Tenant Insurance Cost?
How much is tenant insurance? Renters’ insurance is cheap. On average, Canadians pay $23 per month for renters insurance. Renter insurance in BC is on the high side at $26 per month, while renter insurance in Ontario is on the low side at $21 per month.
In general, renters insurance is affordable, but it can be increased if you need additional protection that requires comprehensive coverage. Basic home insurance has limits on items like jewelry, art, and even bicycles. If you have items of value that exceed the limits of your policy, consider adding an addendum to fully cover these items.
How much coverage do I need for renters liability insurance?
We recommend that you take out adequate insurance to cover the replacement value of your belongings. If you are underinsured and make a claim, your insurer will pay only part of your claim.
Sometimes insurers will propose a typical amount for the size of the property you live in. However, it is better to make a list of your belongings. Many of the best landlord insurance policies allow you to do this online. Before an incident, take the time to write down your assets and their value:
- Valuables such as laptops, watches, and jewelry
- Clothing and accessories
- Kitchen utensils and cutlery
- Furniture and decorative items such as rugs, cushions, and art
- Cycling and sports equipment
- Books, children’s toys, and hobby materials
Usually, it amounts to many thousands of dollars. Worst-case scenario, you want to know that you can replace everything important to you.
What Does The Renter’s Insurance Cover?
Unlike homeowners insurance, which covers a wide variety of items, the protection offered by renters insurance is very clear – it consists of three main elements:
- Content: This includes all items that can be damaged or stolen from your rental space in a disaster. In other words, without this coverage, you’ll be paying out of pocket to replace your damaged or stolen items. On the lower end, consider a minimum of $20,000 coverage for TVs, computers, and furniture. But if you have large collections or expensive valuables, you can add more coverage for a higher monthly premium. Note: Your insurance company may require receipts or photos to prove you own the items.
- Liability: Liability covers you if you are sued for damage to other units from flooding or causing a fire to spread to other homes. It also protects you in case someone injures themselves or their property in your unit and wants to recover their costs. The recommended minimum coverage is $100,000, but we recommend a $1 million minimum. If you can afford it, go for $2 million.
- The additional cost of living: After a disaster, renting a similar space during repairs can get expensive if you don’t have this coverage. Make sure you understand what your insurance covers. For example, if your living expenses are capped at $24,000, you can get an apartment or rent for as little as $2,000 a month for 12 months. Is that enough?
What does the renter’s insurance not cover?
Although it is a basic insurance product, there are a few pitfalls to be aware of with renters insurance.
Subletting your apartment: Short and simple, most policies won’t cover you if you sublet your rented apartment to someone else (or Airbnb). If that person does not take out renters insurance, you are responsible for the risk. This is especially important when dealing with a liability claim.
Actual Cash Value vs. Replacement Cost: There are two insurance calculations used to determine the value of your items:
- Replacement Cost – An insurer will pay you enough to replace your damaged item with a comparable item at the current cost.
- Actual Cash Value – An insurer takes into account what you would pay for that item today and deducts any depreciation. In other words, actual cash value = replacement cost – depreciation.
Tips to Save on renters insurance:
Renters can get insurance for as little as $20 a month, making renter insurance a cost-effective form of protection. Still, it never hurts to inquire about discounts. Here are some ways to save:
- Ask your insurer about bundling your rental and car insurance.
- Better home security lowers your premium. For example, you can save if you have window locks, an alarm system, a smoke detector, or a neighbourhood watch in the area.
- Choose a higher deductible. Because insurers have to pay less in the event of damage, they offer lower premiums.
- The best way to get cheap renters insurance is to compare offers when your policy has expired. Don’t let it auto-renew without talking to your broker first and asking for a discount.
What Is The Best Insurance For Renters?
Which policy is best for you depends on your specific wishes and circumstances. Because everyone’s circumstances and home are different, get an insurance quote to find out exactly how much you’re paying.
Popular renter insurance providers in Canada include:
- AllState renters insurance
- Aviva renters insurance
- BCAA Renters Insurance
- Belairdirect renters insurance
- CAA Tenant Insurance
- Certas renters insurance
- CIBC Tenant Insurance
- Cooperative tenant insurance
- Costco Renters Insurance
- Desjardins renters insurance
- Intact tenant insurance
- Johnson Renters Insurance
- RBC renters insurance
- Scotialife Renters Insurance
- Sonnet renters insurance
- SGI Renters Insurance
- TD renters insurance
- Wawanesa Tenant Insurance
Don’t assume that one policy covers everything you are looking for. Read the fine print and ask if you’re not sure if your antique, bicycle, or grandma’s engagement ring is included.
Are you legally obliged to take out tenant insurance?
In Canada, you are not required by law to purchase renters insurance.
Annuity insurance is not the same as car insurance, which requires you to have coverage. However, you may be required to take out rental deposit insurance as part of your rental agreement.
Renters insurance is a good idea, although you don’t necessarily need it to protect your personal property. Renters who don’t necessarily care about their personal property still want renters insurance, as it protects them from liability for any reason. Also, some forms of renters insurance will pay for your living expenses if your home is uninhabitable.
Conclusion – How Much Is Tenant Insurance
We hope these insights into renter insurance will make you a more responsible renter and help you avoid any nasty surprises with your rented unit. Hope it also gives you much idea of how much is tenant insurance cost in Canada and how it can help you.