Home Insurance for Tenants: Myths vs. Facts

Contents insurance for tenants isn’t required by law in Canada, but your landlord may require it on your lease. Here are some myths and facts about tenant insurance and some reasons why it’s a good idea to get it.

Myth: Tenant insurance is too expensive.Fact: Tenant insurance can cost between $15 and $50 a month on average.

Fact: Tenant insurance can cost between $15 and $50 a month on average.

Here are two tips to save on tenant insurance:

1. Increase your deductible. When you choose a higher deductible, it could help lower your premium. But remember that you’ll have to pay the deductible every time you file a claim for loss or damage.
2. Bundle your home and auto insurance for a potential discount and added benefits.

Myth: Your landlord has insurance that will cover you.

Fact: Your landlord’s insurance covers damage to the building. It doesn’t cover your personal belongings or your liability.

Myth: Everything in your home will be covered by tenant insurance with no limits.

Fact: You may need additional coverage for expensive artwork, fine jewellery and other items.

Here are some examples of what is covered by tenant insurance:

• Loss of or damage to possessions caused by fire, smoke, lightning, vandalism, theft, explosion, windstorm and some types of water damage.
• Your personal legal liability for bodily injury or property damage you unintentionally cause to someone else. It also covers your legal defence costs, whether the incident occurs in your home, elsewhere in Canada or even while you’re travelling.
• Additional costs to temporarily relocate if your dwelling is being repaired following an insured loss (for example, if there’s a fire and tenants must live elsewhere for a period). This could include living expenses, meals, or transportation.

Getting tenant insurance is a smart decision given the relatively low price of premiums compared to how extensive the coverage can be. We recommend starting by making an inventory of all your possessions and figuring out how much it would cost to replace them in the event of loss or damage. This will help you decide if tenant insurance is right for you.

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To find out more, call 1-888-476-8737.

Or visit thepersonal.com/ospe

This article is being provided by the Ontario Society of Professional Engineers on behalf of The Personal which has a group sponsorship agreement with regards to home and auto insurance for our members.

The Personal refers to The Personal General Insurance Inc. in Quebec and The Personal Insurance Company in all other provinces and territories of Canada.

The information and advice in this article are provided for informational purposes only. The Personal shall not be liable for any damages or losses arising from any reliance upon such information or advice. The Personal recommends using caution and consulting with experts with respect to the proper use, installation and storage of any products referred to herein.