Found yourself asking, “what do i need to know about renters insurance?” You’re not alone! The Insurance Bureau of Canada has calculated that approximately 50% of Canadians who rent don’t have contents insurance, but this does not mean that renters should not have insurance. On the contrary, it means that 50% of Canadians who rent houses or apartments are exposing themselves to unnecessary financial risks.
We’ve listed what to know about renters insurance here so that you don’t need to go searching for it yourself.
Legal liability
If there is an accident in your apartment—say your bathtub overflows and causes water damage to the kitchen in the apartment below—you could be legally liable for any water damage or for paying to alleviate pain and suffering if someone should injure themselves.
The right renter’s insurance will protect your assets should an event like the ones described above occur.
Your stuff is valuable
Perhaps you have not accumulated lots of things in your life thus far—you may even strive to live as a minimalist and might believe that you don’t need renter’s insurance.
When asking yourself, “what do I need to know about renters insurance,” it’s important to remember that cash flow is an important reason to buy coverage. But if you had to replace all of your clothing, appliances, furniture, and electronics, you probably couldn’t afford to do so all at once. Think about this: a queen-sized bed frame at IKEA alone costs a few hundred dollars, and that doesn’t include a mattress, a set of sheets, or the brilliant duvet your grandmother gave you.
What about these items?
- Bedframe and bedside tables
- Dressers and the clothes inside
- TV, the stand, blu-ray player, and game consoles
- Dinner table, chair, and table cloth
- Kitchen appliances
- Desk, computer, and printer
- Blankets
- Shelves and books
- Everything inside the closet
That’s too much to replace all at once. Insurance can help you pay to replace these items should the need arise, preventing you from going into debt. The good news is that your contents coverage continues during the move under most policies (but always double-check!).
Renters insurance is affordable
Renters insurance for average homes costs only a few hundred dollars a year, which puts it squarely in the category of smart ways to spend your money. Replacing only your reliable MacBook Air would cost far more than the typical tenant insurance policy.
Having said that, there are limits to how much money you will be given to replace your belongings in the event you need it. If you have a few valuable belongings, like an heirloom necklace or a painting, you should consider insuring these items separately as scheduled personal property.
Suddenly homeless?
Should your abode become temporarily unfit as a home, and you are forced to relocate, what to know about renters insurance is that some insurance policies cover at least some of the cost of living elsewhere temporarily. You should know that your landlord is not going to find you a place to stay.
Hint: You should ask your home insurance provider if the policy you are considering offers financial help if you find yourself suddenly homeless.
Floods happen
You have found a charming basement apartment that is much more affordable than the apartments on the first and second floor of the art deco building you’ve fallen in love with, and you should be commended for your frugal ways. You should also ask your home insurance provider if your belongings would be covered if they were destroyed by water damage in a flood.
Floods happen, and not all tenant insurance agreements cover the damage they leave in their wake.
One more thing
Should you join the renters in Canada who choose not to buy renters insurance, you should know that there is a sublime peace that comes with knowing you have a safety net should an untoward event occur in your future. When people ask us what to know about renters insurance, we tell them that’s the bottom line.
That extra coverage can protect your belongings, hotel accommodations, and liability insurance for your living space. Get a 3-minute quote to see how it all comes together.
