Tenant’s Insurance 101

As a tenant, you don’t own your property but you’re still liable for anything that happens at and to the property and others residing or visiting there.

There are two main types of insurance coverage for tenants to consider: contents insurance and liability loss.
What would it cost to replace everything of value in your space?

Even the most modest clothes or furnishings are costly if you had to buy them all again. Contents coverage will cover the cost of repair or replacing your items. This kind of coverage ranges to include named perils to all risks policies. So your “named perils” policy may cover only the cost of damage or loss related specific risks, such as fire or water hazards, whereas an “all risks” policy would include more causes.

Make sure you know what you own
Furniture, electronics, clothing, jewellery, sport equipment — losing what you own to fire or theft is incredibly stressful, so it’s hard to think of the make and model and cost of everything you own when calamity strikes. That’s why it helps to keep a record of items you own with descriptions, warranties, serial numbers, and receipts — anything that can help establish ownership and dollar value. See Home Inventory page for ways to write and keep up a proper home inventory list.

Additional living expenses
If your place is uninhabitable for a while, you will need to relocate elsewhere temporarily. Talk to your broker to see if your insurance policy covers the cost of a hotel/motel stay and meals, or additional rent charges if you have to live somewhere else while also paying for your regular unit.

Tenant liability for damage or loss
Your landlord isn’t liable for any damage to your possessions, but tenants are responsible for any damage they cause to their living space and other persons living there or visiting. If you start a fire while cooking, or you flood your bath, you’re legally responsible for any damage to your rented unit or extending to other parts of the building too if you live in a complex.

Landlord Insurance
Owning rental property is a major investment and involves more risks than simply buying a home to live in yourself. That’s why you need landlord’s insurance to protect your investment. There are several kinds of coverage to consider for your rental property. See our landlord’s insurance section for details.

Written by insuranceshopper.ca