Whereas homeowners are often bogged down by the many responsibilities — not to mention the high costs — that come with homeownership, renters have a lot less to worry about.
But having few responsibilities isn’t the same as having no responsibilities. Tenants can still be vulnerable when unexpected events occur, which makes tenant insurance not just a nice-to-have, but a need-to-have for smart renters.
If you’re currently renting or are considering it, here are 10 reasons why you need to get tenant insurance.
You’ll Be Attractive to Landlords
Hunting for a place to rent can be time-consuming, challenging and highly competitive. In addition to knowing that you have a good job and can pay the bills regularly, landlords increasingly demand to see further evidence that you’ll be a good renter, and coming in with tenant insurance already in place is a great indicator that their property will be protected.
When you have tenant insurance, it not only helps protect your personal belongings if something happens to the unit you’re renting, it also makes you a more attractive prospect to landlords as it shows you are responsible person plus it helps supplement their insurance if any unintentional damage is caused to the unit. This puts you ahead of your competition when securing your next apartment.
It Costs Less than a Cup of Coffee
The exact cost of tenant insurance will vary from person to person, location, kind of building, amount of coverage required etc but in Canada, the average premium is between $200 and $350 per year, which works out to less than a dollar a day.
By contrast, buying a daily cup of coffee at a coffee shop or fast-food restaurant will cost anywhere between $2 to $5 each day, which adds up to at least $700 per year, and probably more.
Whereas the caffeine jolt you get from coffee will only last a few hours and then be gone, your insurance will continue to protect you all year.
You Won’t Pay to Replace Damaged or Lost Belongings
Most people make a critical mistake when estimating the cost of replacing their possessions in the event of damage. You may not think that your current possessions are worth more than they are. Maybe you’ve had the same old TV for years, you bought your furniture on Kijiji, and you rely on hand-me-downs from friends and family.
But if your stuff gets damaged in a fire or other accident, you’ll have to replace it. You may be able to borrow a few more things from friends and family, but the chances are, you’ll need to go and buy a few pieces to replace what was lost or damaged—and that can start to add up fast. Tenant insurance will help you cover those costs, and provide peace of mind that if disaster does strike the unit you’re renting, it won’t also strike your wallet.
You Won’t Pay for Damages
And speaking of potential damage to the unit, sometimes accidents happen, even to the most responsible and respectful renters. If you do something that accidentally causes damage to your unit, due to your negligence you’ll be on the hook for the cost of repairs, which can start to get very expensive very fast.
Depending on the circumstances and what is damaged, tenant insurance can protect you from having to foot the bill for property repairs, potentially saving you thousands of dollars.
It Covers Your Actions Too
Tenant insurance doesn’t just protect a tenant’s possessions—it can protect the tenant’s actions too. If you unintentionally harms someone else, you could potentially be liable. Tenant insurance can protect you from having to pay damages in scenarios like that by providing up to the limit of liability coverage.
It Protects Your Friends and Family
What if the accident doesn’t happen to you, but does it happen on your premises? Even though you’re not the owner of the unit, you could still be sued or otherwise held responsible if someone gets hurt while on your premises.
Tenant insurance protects you here, as well. It provided liability coverage that will keep you covered if an accident does occur.
It Protects Your Stuff in Storage
Tenant insurance doesn’t just protect the possessions you keep in your unit; it can also cover anything you have in storage, too. Renters sometimes find that they can’t quite fit all of their things in the unit they’re renting, and need to get a storage locker to store their extra stuff. Tenant insurance can be extended to cover those possessions as well, keeping all of your stuff covered.
It Protects Things in Your Car
It’s all too easy to forget to bring something in or decide to leave it in your car overnight. Unfortunately, cars are highly vulnerable to break-ins, and leaving something valuable in your vehicle overnight means leaving it in plain view for potential burglars.
Tenant insurance can cover things that are in your car, giving you peace of mind and protection if anything should happen to your personal possessions left overnight in the car.
You’ll Be Protected When You Travel
Just as tenant insurance can protect possessions that are outside of your unit, it can protect your belongings when you’re outside of the country or otherwise on the road. Tenant insurance can be extended worldwide to cover the things you take with you on your trip, no matter how far from home you’re travelling.
It Protects Your Devices
Nowadays, many of us consider our electronic devices to be almost as important to our homes as our pets and family members. Electronics are notoriously expensive, and if something happens inside your unit, it can be difficult to replace them affordably. Tenant insurance can help protect some of our most prized possessions.
Unfortunately, it’s impossible to prevent accidents from ever happening. But with tenant insurance, you can rest easy knowing that your most prized possessions are covered in the event of the unexpected.
Coverage is subject to policy wording, terms, conditions, and deductibles. Protection is limited to the perils, coverage, exclusions, and limits shown on the policy.