Tenant insurance, also known as renter’s insurance, is financial protection against loss of belongings, property damage, and personal liability in your rental home.
While your landlord will have home insurance to cover property damage, the contents within – your belongings – won’t necessarily fall under that policy. If your belongings are damaged or stolen, rental insurance will help cover the replacement costs. In addition, tenant insurance can cover temporary living expenses and tenant liability claims.
How does tenant insurance work?
This type of insurance works like any other insurance: each month you will pay a premium and should you need to make a claim, you pay the deductible
What does tenant insurance cover?
You may be surprised by the scope of what renter’s insurance can cover. The three main areas of coverage are:
Contents insurance: This protects your belongings (such as furniture, jewelry, TV, and laptop) if they're stolen or damaged.
Liability insurance: This covers you if someone injures themselves in your residence and decides to take legal action against you. It also protects you if you’ve caused damage to other people's property or your own (for instance, if you leave a tap running and flood your apartment and cause water damage to a neighbouring unit).
Additional living expenses: This pays for your expenses if you have to temporarily live elsewhere, such as a hotel, due to your rented space becoming unlivable as a result of an insured peril (ex. flood or fire).
Who needs tenant insurance?
Arguably, if you’re renting then you should have tenant insurance. Tenant’s insurance isn’t required in Canada, though many landlords will require it as terms of the lease. Even if your landlord doesn’t ask for it, it’s still a wise decision.
Consider the value of the goods in your home and if you could afford to replace all of them. Ask yourself, “Could I afford to replace all my personal belongings?” For most, the answer is “No.” Without renter’s insurance, you could find yourself without a home or belongings and no way to pay for accommodation or replacements.
Additionally, if you cause accidental damage to someone else’s property, you could be on the hook to repair or replace what was damaged. With tenant’s insurance, you’re much less likely to have to shoulder those costs.
Unless you have a large amount of savings and can handle unexpected costs at any time, tenant insurance is a worthwhile purchase.
How much is tenant insurance?
When it comes to the best tenant insurance in Winnipeg, policies generally hover around the $100 to $200 range. Since there’s no minimum coverage requirement, you can get insurance online at a lower rate in Winnipeg by purchasing only the coverage you need.
A licensed insurance advisor can offer tenant insurance in Winnipeg. If you contact the broker channel, they can provide you with more than one option, so you can see comparable in price and coverage!
