What is renters’ insurance and do I need it?
3 minute read Published on Jun 28, 2021 by BrokerLink Communications
Renters’ insurance is more commonly called tenant insurance by insurance companies, and it isn’t something you should neglect! It can be easy to forget about this important coverage, especially if you’re living on your own for the first time. However, renter’s insurance can protect your belongings if they’re damaged or stolen. It can also offer liability coverage – that means if you’re sued, you’ll have help covering the legal fees.
Basics of renters’ insurance
Renters typically pay less for insurance than homeowners pay for their home insurance. That’s because renters don’t have to insure the building itself. Your landlord or property owner is expected to have their own insurance to cover any damage that might occur to the physical building. As a renter, insurance will cover the belongings in your unit and personal liability.
Factors to consider when thinking about how much renters’ insurance you need
The first thing you’ll need to do to buy renters’ insurance is take inventory of your belongings and how much they’re worth. Make a list of all your stuff and its estimated value, including:
- Furniture
- Electronics and appliances
- Clothing
- Collectibles
- Other valuable items, e.g. musical instruments, bicycle, jewellery
In addition to asking about your belongings, your insurance broker will have a few other questions, so have this information handy when getting a quote for your tenant insurance:
- How close your apartment is to fire services
- Age of your building
- Square footage of your unit
- Type of heating used
Average renters’ insurance costs
The price you pay for renters’ insurance will vary depending on different factors. The insurance company will consider what city you live in, what neighbourhood you live in and your claims history. For an exact quote, call an insurance broker.
Renters’ insurance myth busting!
Here are a few common myths about renters’ insurance:
| Myth | Reality |
|---|---|
| Renters’ insurance only protects your belongings | False! Renters’ insurance may also provide some liability coverage if someone is injured on your property or if you cause damage to the rental unit.. Renters’ insurance can also provide coverage if you need to stay in a hotel while repairs to your unit take place. |
| You don’t need renters’ insurance if you don’t have anything valuable | False! Even if all your furniture is from Ikea and your clothes are second hand, imagine if you had to replace everything at one time. Most people would not be able to afford that. |
| You are responsible for all the damages in your unit | False! You may be held responsible for damage you cause to the unit but your landlord’s insurance should cover damage to the unit due to structural failure, other-third party (e.g. flood or fire from another unit) or other causes unrelated to you. |
Consult a BrokerLink insurance expert about renters’ insurance costs
The insurance experts at BrokerLink can provide you with guidance when it comes to buying renters’ insurance. We’ll answer any questions you have and make sure you get the coverage you need.
Get a tenant insurance quote 1-866-724-2372
FAQs about renters’ insurance costs
What is not covered by renters’ insurance?
If you purposely damage your unit or if you’re involved in illegal activity, damages will not be covered by renters’ insurance. There are other common exceptions, including earthquake damage, regular wear and tear and pest damage. Talk to your broker and review your policy carefully, to learn exactly what is and isn’t covered under your policy.
Is renters’ insurance required by law?
Renters’ insurance is not required by law in Canada. However, your landlord may require it as a condition of your lease.
Do I need renters’ insurance for Airbnb?
If you are on vacation staying in an Airbnb, you do not need renters’ insurance. If you are renting your home out on Airbnb, you should talk to your home insurance broker to make sure you have the right insurance coverage.