Did you know your landlord’s home insurance has nothing to do with your belongings and liabilities? Yes! It secures the structure and liabilities of the landlord, not yours. So, you must buy a separate tenant Insurance, also known as renter’s insurance, to secure your belongings.
This insurance not only protects you from any third-party liabilities but also covers your additional housing expenses in specific circumstances. Fortunately, tenant insurance is highly affordable in Ontario.
Read on to learn the answer to the question, “how much is tenant insurance in the province of Ontario?” and the factors that affect it.
What is tenant insurance and why is it important?
Tenant insurance, also known as renter’s insurance, is specifically designed to cover a renter’s personal belongings and specific liabilities. Your landlord’s standard home insurance covers the building you rent, not its contents.
In simple words, it is the cost you pay to protect your possessions and specific legal liabilities when you rent a house, condominium, or apartment. In case of any theft or damage to a tenant’s belongings, it covers the cost of replacing them.
How much is tenant insurance in Ontario and what affects the price?
The good news is that tenant insurance in Ontario is highly affordable unless you opt for additional protection. On average, it costs roughly $23 per month in Ontario. On the higher end, it could go up to $26 per month in provinces like British Columbia.
Furthermore, if you’re wondering, “how much is tenant insurance?”, the answer would depend on additional riders, such as valuable items like jewelry or fine art. But, there are some tips and tricks to lower your renter’s insurance cost. Read on to know.
Why do I need renter’s insurance in Ontario?
According to an independent survey, more than 60% of tenants do not wish to buy separate tenant insurance for the following reasons.
- Due to the misconception that their landlord’s policy is enough to provide basic coverage.
- They think their belongings are not valuable enough to be covered. However, they do not take their liabilities into account.
- Lastly, lack of information or awareness.
However, you may have to buy a separate insurance policy in case:
- Your condominium association or landlord makes it mandatory.
- You are not in a position to replace the content of your house in the event of theft or damage.
- You want to protect yourself from legal liabilities if someone gets hurt or their property gets damaged while visiting your house.
- You want to cover the expenses of the living if there is a disaster.
What does tenant insurance cover?
In general, tenant insurance provides coverage to three main components:
1. Contents insurance for tenants
It covers any of your personal belongings lost due to theft or damage in the event of a flood or fire in your rental space. In such cases, you may have to spend money out of your pocket to replace the damaged or lost items. This could put a significant burden on your finances. Here comes the importance of tenant insurance.
It helps the cost of replacement for the things you own. For instance, a simple $20,000 coverage for your furniture, TVs, and other electronic appliances can help you in a big way. Likewise, you can also add precious belongings such as jewelry or fine arts.
2. Renters’ liability Insurance
If someone gets hurt accidentally or their property gets damaged in your rental space, this coverage helps you cover the costs of lawsuits arising from such situations.
For instance, if an accidental fire from your apartment damages the neighbors’ properties, they may sue you for the damages caused. The damage may run into thousands or even millions. Thus, it is better to safeguard your interests through tenant insurance.
3. Additional living expenses
Due to certain situations, if you move out of your rental space to temporary accommodation, tenant insurance covers all costs associated with the additional living.
For instance, in case damages caused by a flood makes you move out of your unit, this insurance covers all the costs associated with accommodation, transportation, and sometimes the cost of meals.
What factors affect tenant insurance rates?
Like other insurances, tenant insurance rates also depend on how risky you are to the insurance company. To calculate it, insurance companies consider the following aspects.
- Coverage: Your monthly or annual premium is directly proportional to the extent of coverage you need. On average, Canadians opt for coverage ranging between $20,000 to $30,000. If you think you need more coverage, you have to spend more.
- Your liability limit: Again, an increase in the third-party liability increases the tenant insurance rates. Generally, it is an excellent practice to go for a coverage limit of $1 million. You may increase or decrease this limit as per your needs.
- Location: If you live in a flood-prone area, high-crime neighborhood, or a location marked as risky, you may have to spend more to get tenant insurance.
- Your claims history: Insurance companies tend to increase the premiums for individuals with a substantial claim history. On the other hand, having no claims history may help you get discounts.
- Condition and quality of your rental property: Factors such as how old is your rental space or the type of material used to build it also have an impact on the renter’s insurance rates.
How much is tenant insurance Ontario — Endnote
The answer to the question, “How much is tenant insurance?” depends on various factors and varies from insurer to insurer.
Although any type of tenant or home insurance is not mandatory in Canada, people still purchase the coverage to secure themselves from uncertainties. Sometimes, landlords or condominiums make it a prerequisite to renting their space. Mandatory or not, rented or owned, getting insured comes with great peace of mind. It covers your belongings and any third-party liability arising from your rental unit.
Moreover, considering the benefits and affordability of tenant insurance in Ontario, it is highly recommended by leading insurers. So, shop around and compare to get the best tenant insurance rates in Ontario.
