Tenant’s Insurance – 5 Reasons You Should Have It

Thinking about purchasing tenant insurance but unsure if it’s worth the investment? Many renters assume they’re automatically covered by their landlord’s policy, leading to misconceptions about the need for their own insurance. While a landlord’s policy covers structural elements like pipes, appliances, and major repairs, it doesn’t extend to your personal belongings, protect you against liability if someone is injured on your property, or cover temporary living expenses if your home becomes uninhabitable. That’s why many landlords require tenants to have their own insurance, even though it’s not mandatory in B.C.

Five reasons why need tenants insurance.

1. Landlords may request it – Landlord’s insurance policies may be predicated on their tenants having insurance which means it will not be optional for you or it could simply be a requirement of residency in certain buildings – a policy stipulated by the landlord.

2. Coverage for damage and losses to personal property – In the event of damage to your personal property or damage to your unit you are protected. Depending on the policy the scope of this protection may vary.

3. Liability insurance – If someone trips and falls in your apartment or on your snowy walkway, you could be responsible for their medical expenses. Tenant’s insurance would cover these costs.

4. Coverage for additional living expenses – In the event you are required to vacate your unit for a period of time, for example, while repairs are being carried out, all associated costs such as hotel fees are covered.

5. Affordability – Premiums can start as low as $29/month for the minimum $30,000 coverage. Here’s a table comparing the annual cost of $30,000 worth of insurance coverage for a sample healthy, 30-year-old with a medium credit rating,  living in downtown Vancouver. The unit has a local fire alarm, the building is 150m from a fire hydrant and within 5 km of a fire hall.

PRO TIP: You may be eligible for discounts. Each carrier offers different ones and that is why it is important to get a number of quotes.

liv.rent’s friends at Square One have an exclusive deal on tenant’s insurance, it’s a great place to start getting quotes. We also didn’t want to leave out our landlords, so we got you a discount on home insurance, too.

Keep in mind that all tenant insurance policies are not created equally – they vary from company to company, location to location and from person to person. It’s important that you do the necessary research to find the company and policy that suits your specific needs.

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