Many people think it only covers your possessions. Find out what else you get with tenant insurance so you can decide if it’s necessary for you.

Insurance is a basically a contract, represented by a policy, in which the person that is covered receives financial protection or reimbursement against losses from an insurance company. Getting insurance is completely up to you, but there are a number of good reasons why you may want to consider getting it.

As a Tenant you are liable – yes, legally responsible – for any harm you cause to any part of your building and to others who live or visit there.  If your toaster oven starts a fire that damages not only your apartment, but also the neighbours or perhaps the entire complex, you may have to pay out a lot of money. 

What about your possessions?  You might not think that you own much of real value, but what if you had to replace everything all at once due to fire or water damage?  Replacing your clothing, alone, could run you a few thousand dollars. And that old futon and bed might not look like much, but buying new ones would be hard on the wallet. When you consider what it would cost to replace everything, monthly insurance premiums may look pretty good by comparison.

What if you had to leave your home after a disaster? Coverage for additional living expenses will help you pay for additional costs such as a hotel and food in a situation where you are forced to leave your home following a covered loss.

What does it cost? There are many places you can get tenant insurance – Square One, BCAA and through major banks like RBC and TD, just to name a few. Square One, based out of Vancouver, is great to deal with and can give you a price on home insurance in just minutes. Your quote may surprise you by being so affordable, but the truth is that many people are paying too much for their home insurance.

Factors that may affect the cost of insurance is if you operate a business in your rental property, the age of the building, and the dollar amount of personal property you need coverage for, and if you’ve had a claim in the past.