Why is tenant insurance important when you’re renting in Alberta? It’s a common question and with growing home prices, and an increasing focus on the rental accommodation market, there’s an increased likelihood that Canadians will increasingly be renting rather than owning their home, condo, or apartment unit and if that’s you, you’ve worked hard for your stuff and both you and your stuff deserve protection.
According to a January 2017 Global News update, “Renter’s insurance, also known as tenants or contents insurance, will help replace possessions in your rental unit in the event of loss, theft, or damage. And while it’s relatively inexpensive, experts say many renters are still going without insurance.”
That update identifies three key reasons for having tenant insurance:
- To insure your belongings – according to the Insurance Bureau of Canada (IBC), content insurance will repair or replace pots, pans, clothes and most other household items;
- To cope with your other needs after a loss – insurance covers extra costs that an insured loss may cause you while your apartment is being repaired such as hotel bills, restaurant meals and moving costs under coverage called additional living expenses, according to the IBC;
- To protect you in the event of a lawsuit – lability insurance protects tenants from the harm they may cause to anything or anyone who lives or visits their rental unit, “you could be held financially responsible for the cost of the injured person’s pain, suffering and medical bills,” says the IBC.
To maximize the benefits of tenants insurance it is important to keep your home inventory up to date, and that certain items are subject to limits that can reduce the amount payable, so understanding the limitations and exclusions in your policy is equally key.
There are typically two types of coverage offered for tenant insurance: ‘all-risks’ policy means all of your contents (except those specifically excluded) are covered; and, a ‘named perils’ policy that only covers the perils that are specifically stated in the policy purchased.
There are typically two ways you can be indemnified, or get paid under your policy: actual cash value, or replacement cost. Remember, an insurer has the right to determine whether an article is repaired or replaced. Cost depends on many things including:
- how much insurance you need;
- the location of your dwelling;
- how your unit or apartment was constructed;
- your insurance company; and
- your claims history.
If you have questions about tenant insurance, contact Thomson Schindle Green Insurance Company at 1-800-830-9423 to speak with one of our highly qualified representatives to receive a free quote or visit one of our offices in Bassano, Brooks, Calgary, Edmonton, and Medicine Hat today.