While there is currently not a law in Alberta that requires tenants to have renters insurance, many landlords will often make this a condition of signing a lease agreement.
While you may have never thought about having tenant insurance before, there are a number of reasons why you should. Keep reading below to find out what renters insurance is and why you need it, even though it isn’t mandatory.
Sometimes, accidents can happen in your apartment, such as if someone fell and injured themselves while visiting you. With tenant insurance, you have liability protection which may cover you for any legal action or settlements, up to your policy limit.
Coverage for Your Belongings
Should a disaster strike and your possessions be destroyed, your renters insurance policy would cover you. This coverage includes protection for almost everything in your apartment, from kitchenware to furniture to electronic equipment. If you don’t have renters insurance and a disaster strikes, it can be a huge financial hardship having to replace most of your belongings.
Coverage Outside Your Apartment
Your renters insurance may also protect your belongings when you are away from your apartment. For instance, if your phone was stolen from a locker at your gym or your briefcase containing your laptop out of your car, these items may be covered. Without this coverage, you would need to replace these items at your own expense.
Additional Living Expenses
In the event that you had to leave your apartment due to an emergency like a fire or flood, or while damage was being repaired, your renters insurance will help. Your policy may include additional living expenses coverage which may include compensation for items like a hotel stay or meals while you are displaced.
What About My Landlord’s Insurance?
Unfortunately, there is a common myth amongst renters that their landlords have insurance and that this coverage would protect their belongings. While it is true that your landlord would have an insurance policy, should a disaster occur, this policy would only cover the structure of your apartment and any items inside which belonged to your landlord, like a fridge or stove. None of your personal belongings would be covered under the policy of your landlord.
Can a Landlord Require Tenant Insurance?
Even though renters insurance is not required by law in Alberta, your landlord can insist that you have a valid policy before agreeing to sign a lease with you. While as a tenant you can try to negotiate this condition of a lease, many landlords will firmly insist that anyone that they rent to be properly protected by tenant insurance.
Is Renters Insurance Affordable?
While it currently isn’t required by law to have renters insurance, getting tenant insurance to protect yourself and belongings is probably way more affordable than you think. At Bow Valley Insurance, we will do the shopping for you to find the best coverage for the lowest price. Plus, we will look for any discounts that you may qualify for help you get an even better rate. For a free, no-obligation quote on renters insurance, contact a member of our team today.