If you rent a home, you may have heard of tenant insurance. You may have even been required to purchase a tenant policy prior to moving in. But what exactly is tenant insurance? In this blog post, we will go over tenant insurance, also sometimes called renters insurance.
What Is Tenant Insurance?
As a tenant, it is so important to protect yourself and your belongings from unforeseen events. You might think that your landlord’s insurance will protect you, but a landlord’s insurance policy only covers the building, not the contents. Tenant insurance protects your personal belongings and yourself from things such as fire, water damage, theft, and more.
What Does Tenant Insurance Cover?
Personal belongings – TV, laptop, furniture, clothing, jewelry, other valuable items
Personal liability – legal expenses that arise from injuries occurring in your house
Additional living expenses – costs associated with finding an alternative place to live while your house is being repaired
What Is Tenant’s Liability Insurance?
Tenant’s Liability Insurance protects you from potentially devastating financial losses that can arise from damage accidentally caused to the property, or injuries that occur within your rented home. Personal liability covers you from legal and medical costs associated with injuries, and property damage liability insurance covers you if you accidentally cause damage to the house.
What Is Tenant’s Content Insurance?
Tenant’s Content Insurance covers the cost of replacing your personal possessions if they are damaged or destroyed by an insured peril, such as fire, theft, water damage, and more. It is important to note that there may be limitations on coverage for items like jewelry, furs, and artwork. You can speak to your broker to find out what type of limits work best for you, and you can add endorsements onto the policy if needed.
What Is Additional Living Expenses Coverage?
If your rental property becomes uninhabitable due to an insured event like fire or water, tenant’s insurance will cover the cost of temporary accommodation, food, and other expenses while your rental is being repaired.
How Much Does Tenant Insurance Cost?
Tenant insurance in Alberta typically costs between $20 and $30 per month. Compared to the price of legal costs in a liability lawsuit, or the cost of replacing all of your personal belongings, it is usually worth it to have peace of mind knowing that you are covered.
Should I Get Tenant Insurance?
Many landlords require that tenants purchase a tenant insurance policy prior to moving in, but even if your landlord doesn’t request it, it might be worth considering. If you don’t want to pay out of pocket in the event that something goes wrong, it is probably a good idea to invest in a tenant insurance policy. Even if you are on a tight budget, your broker can find an affordable tenant policy that offers protection and peace of mind.