Tenant Insurance

According to Statistics Canada, in 2008, 4.4 million households in Canada rent their home, but only 41.8% covered with insurance. Insurance Bureau of Canada said tenants are not required to have insurance, but they can purchase it for about $ 20 to $ 30 a month. It seems that Tenant Insurance is unpopular in Canada. Here we will look at some basic information about Tenant Insurance.

What is Tenant Insurance?

Tenant Insurance is a form of insurance where the tenant of a house, condo or apartment can have insurance to protect the contents of his place. Tenant or Renters Insurance provides coverage for your personal belongings in case they are stolen, damaged, destroy, or if your actions (e.g., leaving the bathtub running) caused damage to: your apartment, your neighbor’s apartment, and the apartment building itself.

Why Do We Need Tenant Insurance?

Tenant insurance protects you from having to cover the damaged costs out of your own pocket and also gives you a peace of mind.

How Much the Tenant Insurance Premium?

A basic tenant’s insurance package for an apartment in a building can cost between $125 and $200 a year for the coverage of $ 15,000 to $ 30,000 of personal property. The premium is largely determined by the amount value of coverage a tenant needs for personal property. Premiums will vary according to location, insurance history, optional coverage, etc.

The insurance cost increases if you live over a store or restaurant. The risk increases if you add additional coverage for items of higher value, or if the space also is used for business purposes.

What Is Standard Tenant Insurance Coverage?

All Risk Contents Coverage insures all your belongings inside your home for the most common types of losses. When you have All Risk coverage, your contents are insured for everything. Named-Perils coverage includes a list of the most common types of things covered under your insurance. Named-Perils include fire, theft and water damage.

The Additional Living Expense coverage pays for your reasonable and necessary expenses to temporarily live away from home if you are forced to leave your home because of a loss. Hotel and food costs are the type of expenses that would be covered under such circumstances. There is usually a limit on this kind of additional living expense coverage.

Tenant Insurance also covers Personal Liability that protects you from having to pay damages to people, if you've been found responsible for unintentionally injuring them or damaging their property.

How to Make Claims Easier?

As soon as you get the tenant insurance you need to document, take picture or list all your belongings. A record of your things will be valuable in settling claims with insurance company.