facebook pixel

Default Test Message - Lorem ipsum dolor sit amet, consectetur adipiscing elit. Suspendisse dapibus, ante a dignissim luctus

Do I really need tenants insurance?

Two young women moving into apartment, looking at their laptop

July 17, 2019. If you don't own the property in which you live, you may think that your possessions would be covered under home insurance. However, home insurance does not cover a tenant’s possessions.

Why do you need tenant’s insurance? Here are a few ideas to help you decide.

Tenant Insurance Required by Lease

It is becoming increasingly common that landlords require their tenants to take out a tenant insurance policy as a condition of your rental agreement. According to a case in 2005, the Ontario Superior Court of Justice ruled that a landlord can evict a tenant if you fail to meet this lease condition. For example, if you leave the tap running and the bathroom cupboards need to be replaced, your landlord would want your insurer to pay it.

Tenant Insurance Covers Your Belongings

According to a recent Kanetix survey, 17.3 per cent of Canadians think their possessions are covered by the landlords' home insurance. However, this is not the case! If you don't have tenant insurance, your possessions are not covered in cases of theft, fire damage, water damage, and so on.

Walk through your home today and add up the cost of replacing all your furniture, televisions, audio equipment, computers, phones, jewelry, clothes, and kitchen appliances, and you will gain an appreciation of how costly this could be to replace your items. Your possessions cost more than you may think, and without tenant insurance, these possessions aren’t covered.

High-Crime and High Peril Areas

If you rent a property in a high-crime area where burglaries are common, or you rent in an area with frequent weather-related damage, you cannot leave your belongings uninsured. For example, if you were a victim of theft, your possessions would not be covered, so therefore it’s imperative to have tenant insurance.

Liability Under Tenant Insurance

As a tenant in a condo or apartment, you are legally responsible for damages you might cause to the rest of the building or common areas. Furthermore, you will be held legally responsible if people injure themselves in your rented space. For example, if your unattended candle causes the neighboring apartment to burn down, the damages others claim from you in court can run into five or even six figures.

Irresponsible Roommates

If you co-rent with others, only those listed on the tenant insurance policy would be covered. Furthermore, if you co-rent with students, heavy drinkers, or otherwise irresponsible people, it is important to insure your property against the damages they may cause.