There’s a lot to think about when moving into a rented apartment or home, from finding a place and signing the lease to purchasing furniture and arranging for movers. Unfortunately, insurance is something that often gets forgotten in the hustle and bustle of moving.
Whether it’s required by your landlord or not, tenant’s insurance is something that should be on every renter’s moving-in checklist. It costs less than most people think and you’ll be grateful for that small extra monthly cost when costly problems occur.
Whether you’re moving into a student rental, you’re a young professional in your own apartment or a family moving into a rented home, here are some of the reason why every renter needs to purchase tenant’s insurance:
1. Your Lease May Require It
While tenant’s insurance isn’t required by law in Ontario, your landlord can decide to make it mandatory. Just like how many mortgage lenders require home insurance for a mortgage, your residential lease may require that you carry your own insurance.
Failing to purchase tenant’s insurance as required could not only leave you unprotected in the event of a claim, it could also create problems from breaching the terms of your lease.
2. Protect Your Possessions
While your landlord will almost certainly carry insurance on the physical building you’re renting, it’s your responsibility as a tenant to insure your own possessions. Tenant’s insurance will cover the replacement cost, up to the insured amount, for your possessions in the event of damage or theft.
Some renters think that their possessions aren’t worth enough to insure. However, when you add up the cost of everything you own…it’s most likely more than you think! Especially in our high-tech times, the cost of replacing items on your own can be pretty significant so you probably don’t want to be stuck paying out of pocket.
3. Personal Liability Coverage
If a visitor suffers an injury or damage to their possessions while at your rental property, you could be held personally liable for damages. The costs of this could be significant, so this is where personal liability comes in.
There can be grey area between whether the landlord or the tenant is responsible, such as someone slipping and falling on an icy driveway. While the lease may dictate that clearing the driveway is the responsibility of the landlord, the claim may ultimately end up going through both the landlord’s and tenant’s insurance.
Ultimately, it’s better safe than sorry when it comes to liability coverage. It’s also better to have an insurance company on your side to help you navigate that process than to do it on your own, even if your insurance company doesn’t end up having to pay anything.
4. Coverage for Additional Living Expenses in the Event of a Claim
This is where renter’s insurance can really come in handy. Serious damage to your unit such as a flood or fire could require you to be displaced. Unfortunately, the cost of relocating for days, weeks or even months can be pretty significant.
Additional living expenses coverage means that if you need to stay elsewhere because of an insured event, the costs of a hotel room, restaurant meals etc. will be covered.
These kinds of events already come with enough stress and disruption. Additional living expenses coverage can make this event a little bit easier by minimizing the financial impact.
5. Peace of Mind
Don’t you feel better just learning about all the different ways that tenant’s insurance can help? Perhaps the biggest benefit of purchasing tenant’s insurance for your apartment or rented home is the peace of mind of knowing that you won’t be on your own should problems occur.
Just because you don’t own the space yourself doesn’t mean you shouldn’t get coverage for what you do own and protect yourself against any problems that may come your way.
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Ready to protect your rental unit like it’s your very own home? Contact us for a quote on tenant’s insurance today and get ready to experience the Cayuga Mutual difference for yourself.
