My current homestay agreement ends in December, and I’ve been looking around for a new rental. One requirement I’ve noticed some landlords asking for is tenant’s insurance. It’s not something I had thought of before, so I started looking into it, and now I think that anyone who rents should seriously consider it.
It’s important to note that although your landlord will have property insurance, you as a tenant are not covered by it. Instead, you will need tenant’s insurance to provide you with coverage at your rental address.
Although product features vary across providers, the main coverage is for the contents in your rental and expenses incurred if your rental becomes un-inhabitable. So if an unfortunate event happens, you are able to make an insurance claim for items destroyed and for a hotel stay until your place is repaired. The list of events covered is quite extensive; for example, the insurance policy I bought even covers losses resulting from my basement suite getting hit by an airplane.
The list of losses covered is also very detailed and includes things that I didn’t even think about. In the event that my rental gets broken into and my possessions stolen, I can make claims for their replacement costs. On top of that, if I then become a victim of identity fraud because of a stolen identification document, the costs of dealing with the fraud are also covered. Of course, not all insurance products are the same. It’s a good idea to compare a few and have an idea of what’s offered and what’s best for your situation. Requesting a tenant’s insurance quote is free and can often be done online.
Insurance is sometimes thought of as an unnecessary waste of money, because it’s an intangible product and people rarely make a claim. However, the benefits it offers far outweigh its costs. When I first arrived in Canada, I had to go to the emergency room for an injury. This was before my MSP coverage was activated. Fortunately, Camosun College had made me buy private medical insurance. The insurance cost me less than $100, but it covered all of my medical bills, which amounted to over $3,000. Similarly, the tenant’s insurance I purchased costs me about $15 a month but I’m certain that any claim I have to make will be far in excess of the premiums I pay.
Beyond the monetary protection, being covered by an insurance policy means there is one less thing that you have to worry about.