Why you need tenant insurance
Your landlord carries insurance on any building you rent, but that only covers the property itself. As a renter, it’s your responsibility to provide your own personal insurance, which will protect your belongings and even you in the event of a third-party claim that arises from an incident in your suite. While the idea of paying more money on top of your rent to cover insurance may not sound very appealing, you will be extremely grateful if the unexpected happens. The best plan, then, is to include the tenant insurance amount in your overall budget.
Protect your contents
The value of your belongings may not seem all that significant – until you find yourself in the situation of having to replace them. Furniture, electronics, clothes and other personal items can be extremely valuable – and your landlord has no legal responsibility to replace them if an accident happens, even if it is no fault of yours and even if it doesn’t originate in your unit. You could end up having to pay for all new belongings due to some neighbour’s negligence, and that makes the expense even less appealing.
Keep in mind that tenant insurance can vary. Some policies will cover items left in your vehicle in the building’s parkade, while others may not. Also, if you have particularly expensive items (like jewelry, a piano or pricey bicycle) you will likely have to pay extra to cover their replacement. So, it’s a good idea to shop around and ask questions of your insurer.
Make recovery easier
In the event that something unfortunate does happen that forces you to move out (even temporarily) having tenants insurance will help pay for your relocation and increased living expenses while you’re waiting to return to your unit.
Limit your liability
Accidents happen, and tenant insurance can protect you from having to pay out as a result. Your policy covers you in case someone gets hurt while in your home, or even if you unintentionally injure someone else or damage their property. Also, if an accident (such as a fire) occurs in your unit that ends up damaging the rest of the building, your policy will cover it. Without insurance, you could be held liable for an entire building, which is something no renter is really prepared for.