Many people who rent their homes think that tenant’s insurance is a waste of money. Some people think that their possessions are not valuable enough to insure. Other people assume that their landlord’s insurance will cover them if their possessions are damaged or if they are sued by someone who is injured while visiting their home.
The reality is that your landlord’s policy is not likely to cover you if your possessions are damaged or stolen. Your landlord’s policy definitely will not cover you if you are sued by a person injured because of your negligence.
Tenant’s insurance can cover the cost of replacing damaged and stolen items.
More importantly, tenant or renter insurance provides you with coverage if you are sued by someone who suffers an injury on your rented property as a result of an accident. Although you are not legally required to buy tenant insurance, it is a smart and affordable way to protect your possessions and your wealth.
According to the Insurance Bureau of Canada, most tenant insurance policies have liability coverage of $1 million that you can increase to $2 million. The cost of living expenses may also be included in your policy if you are unable to live in your apartment due to fire-related damage, for example, but it is vital to understand the terms and conditions of your coverage.
Tenants who face personal injury lawsuits without insurance risk financial ruin. Spending a few minutes talking to your insurance broker about tenant’s insurance can end up saving you a lot of money in the long run.