Just because you don’t own the place where you live, doesn’t mean you don’t need insurance. While Home Insurance protects your dwelling and its contents, Tenant Insurance focuses more on protecting the contents and your possessions. Whether you’re renting an apartment, condo, flat or whole house, you should consider having Tenant Insurance. At this time of year, with many young adults heading off to school and perhaps into new living situations, investing in a tenant or renter insurance policy isn’t just a responsible choice; it can mean the difference between a minor inconvenience and a total disaster. So, what exactly is covered by Tenant Insurance? The Nicol Insurance team is here to help guide you, so keep reading as we shed some light on this unique type of policy.
What is Tenant Insurance?
Tenant Insurance protects any of your personal property when you don’t own the building in which you live. Whether you’re staying in an apartment building, a condominium, renting a room, or staying with a friend or relative for a lengthy period of time, having proper renter’s insurance will help protect you against an unfortunate loss. While Tenant Insurance isn’t necessarily a requirement in every living situation, it’s always a wise investment. Your clothes, furniture, electronics, jewellery and home media may not be worth much individually but losing them all at once can take a significant toll on your finances.
The most common misconceptions about renter’s insurance stem from not knowing what it actually covers. Generally speaking, Tenant Insurance covers everything inside your living space that isn’t fixed. The actual structure of your home is up to your landlord’s policy, including the walls, plumbing, ceiling, floors, cabinets, major appliances, roof and building exterior. This means that in case of a loss, the responsibility of placing a claim may rest on you, your landlord, or both of you, depending on the circumstances.
For example, if there is a burst pipe in your wall, your landlord is responsible for placing the claim and the liability for any damages to your property rests with them. If there is a break-in at your apartment and your property is stolen, your landlord will have to claim for any building damages, while you will have to claim for any personal property stolen. Tenant Insurance works differently depending on the circumstances of the loss, so be sure to speak to your broker so you know how it applies to the risks you’ll likely face. In any emergency situation, knowledge is power!
Aside from reimbursing you for any lost, damaged or stolen property, renter’s insurance will also cover you for the cost of any alternate living arrangements or moving costs, in the event that your home becomes uninhabitable. For example, if there is a fire in your kitchen that causes smoke damage to your living space, you will most likely not be able to stay there again until contractors have finished mitigating the damage. You may be forced to stay in a hotel or motel for a while, but the cost of your stay will be covered by your policy up to a set dollar figure.
Another common misconception about Tenant Insurance is actually a misconception about vehicle insurance. Many believe that in the event that your car is broken into, any personal property stolen falls under your vehicle insurance. In fact, any belongings stolen from your vehicle still count as part of your Tenant or Home Insurance policy. If you don’t have that kind of coverage, then you can’t claim for any lost property. If you’re the type of person that keeps a lot of valuables in your vehicle such as tools or electronics, Tenant Insurance is something you simply can’t be without.
It’s also worth noting that renter insurance comes with personal liability coverage built-in, which can be a real life-saver if you ever inadvertently injure someone. For example, if a friend is visiting, but hurts their back in a “slip and fall” on your property, personal liability coverage protects you from any potential lawsuits and helps cover their recovery costs. Personal Liability coverage doesn’t just apply to incidents in your home; it counts anytime you cause an injury to someone else, aside from vehicle-based incidents which have their own unique form of liability insurance. Suffice it to say, renter insurance is a worthy investment for this coverage alone!
We understand that insurance coverages can be confusing, but that’s why we’re here! The brokers at Nicol Insurance will help you understand your coverage and adjust your policy to make sure you’re protected. When it comes to Tenant Insurance, it’s important to make sure you understand how it works BEFORE you need to place a claim. That way you’ll know what’s covered and how to react appropriately for the best possible outcome. If you’re ever unsure about what your policy covers, you’re more than welcome to call your Nicol Insurance broker. We’re always happy to sit down with you and help any way we can.