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4 Reasons to Buy Tenant Insurance


By Krystal Yee, blogger for Moneyville

You'd be surprised how much it costs to replace your things. As students head back Statistics Canada reported that fewer than 50 per cent of all tenants have household insurance. to school, one thing not often found on their shopping list is tenant insurance.

But here are a few reasons to consider getting some:

You Probably Have More Stuff Than You Think
You might not think your possessions are worth very much – but take a few minutes to make a list and see how quickly it can add up. Replacing the clothing in your closet could cost thousands of dollars. Not to mention your iPhone, sports equipment, musical instruments, or furniture.

Your Landlord’s Policy Won’t Cover You
Even though your landlord likely has property insurance, that insurance is in place to protect the structure and the landlord’s own personal liability, not your stuff. Meaning, all of your personal belongings – such as furniture, computers, iPods, clothing, and jewelry – are your responsibility to protect under your own insurance policy.

For example, if your rental building caught on fire, and all of your personal belongings went up in flames, your landlord’s insurance would only pay for repairs to fix the building itself. You would be responsible for replacing all of your belongings.

The Liability Factor
Did you know that you’re liable for anything that happens in your apartment? If your toaster starts a fire that damages other units in your building, you might be found liable for that damage. Likewise, if someone gets hurt while in your home and they decide to sue you, you could end up paying a lot of money out-of-pocket.

If you are living with roommates, everybody should have their own policy.

Tenant’s Insurance Covers Your Stuff Outside of Your Home
Many people don’t realize that tenant’s insurance will cover your belongings even if you take them outside of your home. Say you have a book of CDs that you sometimes put in your car so you can listen to music while driving to school. If you were to park downtown for a few hours, and then come back to see that someone has broken into your car and stolen all of your CDs, they won’t be covered under your car’s insurance policy. But, because you have tenant’s insurance, when it comes time to make a claim, it will be considered “property temporarily removed” from your apartment in the eyes of an insurance adjuster. You can receive the full replacement value of the dozens of CDs that you thought you would never get back.

It's worth mentioning that if you are a student living away from home while attending school, you might be covered under your parents’ homeowner’s insurance policy. However, if you have permanently moved out of your parents’ house, you will probably need to purchase your own policy. Check with your parents’ insurance representative as soon as possible to make sure that you are covered.

To read the full blog, visit here.