As a renter, you're prone to unique risks when living in a rental property owned by your landlord. Here's where a tenant insurance policy comes into play. Tenants insurance, commonly referred to as renters insurance, is a vital safeguard that protects your personal belongings, finances, and interests in the event an insured risk occurs in your rental unit. Sounds too good to be true? It's not! So, how much are tenant insurance rates in Ontario? Stick around to find out more information.
How much is tenant insurance per month in Ontario?
Similar to any other type of insurance coverage you can buy, the cost of tenant insurance in Ontario is different for all renters throughout the province and the rest of Canada, for that matter. That being said, the average tenant insurance cost in Ontario is between $25 and $30 per month, making it an affordable investment that offers quality protection long-term.
For a personalized renters insurance quote, we suggest reaching out to your insurance company directly or shopping around online to compare rates and coverage options. That way, you can find a policy that offers a balance between comprehensive peace of mind for an affordable price.
What does renters insurance cover in Ontario?
Before purchasing your own tenant insurance policy, it's important that you understand what is and what isn't covered under a basic insurance plan. The majority of insurance coverage options will include the following:
Personal liability coverage
Liability insurance coverage protects you in the event someone brings a legal claim against you alleging bodily harm or damage to their personal property.
For example, if a friend visits your house and gets hurt there, you won't be held personally liable in the event that they sue you for damages. Additionally, legal costs, medical expenses, property repair bills, settlement fees, and other fees will be covered by liability coverage, regardless of whether you are found liable or not.
Contents coverage
Contents insurance offers renters financial compensation in the event that their personal property is damaged or stolen from their rental unit. For example, if your unit is broken into and your items are stolen or damaged by the burglar, your insurance company will pay the cost of repairing or replacing any of the damaged items.
Typical circumstances covered by contents insurance include theft, lightning, wind, fire damage, as well as vandalism. It's important to note however, that the circumstances listed in your existing policy will vary from one provider to the next. So, in order to ensure that you can purchase additional insurance in Ontario if you wish, make sure you ask your insurance advisor what your specific policy includes.
Additional living expenses coverage
In the unlikely scenario that your apartment is destroyed and you have to move while it is being restored, additional living expenses coverage will kick in. As an example, if your home floods due to broken plumbing or other plumbing issues, you may have to stay elsewhere until it is safe to leave in your space again.
The cost of storing your personal belongings in a storage facility and other related charges may also be covered under additional expenses coverage, based on the details of your renter insurance policy.
Again, just keep in mind that some types of damage might not be covered by this kind of tenant insurance. Therefore, the next time you want to purchase tenant insurance, make sure that you ask the insurance company what is and is not considered an insured risk.
Optional renters insurance policies
Beyond the tenant insurance mentioned above, there are additional coverage options available that you can purchase on top of the standard protections listed above. Remember, however, that additional tenants insurance will likely cost you a higher premium each month. Most optional tenant insurance coverage options will include the following:
Sewer backup
When there is an excessive amount of rainfall in the region, the municipal sewage lines can overflow and cause sewer backups into your unit. When this happens, your living space can suffer significant water-related damages along with health hazards that put you and anyone else living in your rental home at risk.
With sewer backup coverage, your insurance provider will cover the expense of replacing or repairing your belongings and any property damage to your space thanks to this add-on policy.
Overland water insurance
Overland coverage is an additional renter's insurance add-on that you might want to take into account when you want to buy tenant insurance. The purpose of this coverage is to shield customers from harm resulting from above-ground floods, such as spills from neighbouring lakes or rivers, melting ice, or excessive rainfall.
Personal valuable items
This renters insurance policy is specifically tailored to those who own high-ticket items. Whether it be artwork, musical instruments, collector items, jewellery, devices, or other things with high price tags, it will cover the cost of repairs or replacements if they are damaged by an insured risk.
What factors affect tenant insurance costs?
Similar to car insurance, home insurance, or other types of insurance in Ontario, there are several different factors that will be considered when calculating your cost of tenant insurance. Here's what you can expect an insurance provider to take into account:
The kind of rental property you live in
The kind of property that you rent, including how big it is and whether it's a single-family residence, apartment, or townhouse.
Where the rental unit is located
Another factor that is taken into account when calculating insurance rates is where your rental home is located. For example, if you live in an urban area where there is a high crime rate, you may end up paying more for your renter's insurance compared to someone who lives in a more rural area where the crime rate is lower.
Further, if the area you're located in is more prone to natural disasters such as flooding, you may also pay a bit more for a standard tenant insurance policy than renters in other Ontario cities.
The total cash value of your personal belongings
The total cash value of your belongings will also be taken into account. This helps tenant insurance providers get a rough estimate as to what they will need to pay in the event you file an insurance claim in the future.
Your individual credit score
Some insurance providers will also conduct a credit check when calculating your premium. While a soft credit check will not affect your credit score, having a healthy score can help you save a bit on your monthly payments.
Who you live with
If you live with other people, your insurance policy may be increased. An insurance company will also consider how many people are sharing the rental space with you.
Whether you have pets or not
If you have pets, you can also expect to pay more for your tenant insurance, given that there are certain risks that come with owning an animal. For example, if you own a high risk dog, your cost of tenant insurance may be more expensive than those who do not own an animal.
How your home is built
How your rental home was built, its overall condition, and how old it is can play a role in your premium. For example, older properties may have more risks than newer builds.
The quality of your home's roof
The condition of the roof on your home can play a factor in how likely it is that you'll experience water damage to your living space.
HVAC, plumbing and electrical
The types and conditions of the plumbing, heating, and electrical systems in your rental will be taken into account as well, given that they can cause problems if not taken care of correctly or if they are older.
Your individual claims history
Your personal insurance claims history is another key factor. For example, if you have numerous past insurance claims, you can expect to pay more for your tenant insurance in Ontario than someone who has not filed any previous claims.
The tenant insurance policy you choose
The policies you select and whether you choose additional tenant insurance policies for yourself beyond the standard coverage offered will increase your renter's insurance, given that you will have supplemental protection.
Whether you choose a higher or lower premiums
The coverage types and deductibles you choose for your policy. A higher deductible, for instance, can result in a cheaper monthly price tag. Just keep in mind that in the event that you need to file a tenant insurance claim, you will need to pay more before your insurance pays for the rest of the damages. So, ensure that you are able to afford paying a more expensive deductible before opting for one.
Whether you quality for discounts
If you want to save money on your renter's insurance, don't forget to ask your insurance provider whether you qualify for any applicable discounts. Most companies offer discounts on insurance rates if you have multiple policies from them, and for other reasons as well.
Are you looking for a tenant insurance quote? Contact the experienced brokers from BrokerLink or use our online tenant insurance quote tool to get competitive and personalized renters insurance quotes at your fingertips. Get a free online quote right away by using our online form tool!
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Who can be included on a tenants insurance policy?
Renter's insurance can include multiple individuals under the policy. However, there are some conditions that your insurance firm will take into account when helping you put together the right coverage for your circumstances. Here is who is able to be included under a renter's insurance plan:
Main policyholder
The tenant who purchases the tenant insurance policy will be named as the primary policyholder. Essentially, this title makes them responsible for paying the monthly premiums and managing the actual plan throughout the duration of the agreement.
Additional individuals
If you are married or have a common-law partner, they can often be included on your tenant insurance plan. This will help ensure that the tenant insurance policy extends to their personal belongings and the liability portion. Further, if you have children, they can also be placed under the insurance coverage as dependants. Again, this will extend to their personal property and liability.
Lastly, some insurers will allow you to put your roommates onto the policy as additional insureds. That being said, it may be easier for them to purchase their own renter's insurance to avoid confusion.
Is tenant insurance mandatory in Ontario?
Although renters insurance is not legally required in Ontario, your landlord can still require you to purchase coverage as a condition when signing your lease agreement.
Both you as a renter and your landlord are less inclined to suffer financial losses when tenant insurance is in place. In addition to protecting you from personal liabilities—which may include injuries sustained on the property or damages to the building itself—it will insure against damage to your personal items. In the end, investing in renters insurance is a smart move that can ultimately protect your best interests.
Is it a good idea to get tenant insurance?
Yes, it's always a good idea to purchase tenant insurance. Given that renters insurance is relatively affordable compared to the level of protection it offers you, like any type of insurance, it's always better to be safe, rather than sorry. Unexpected accidents can happen at any time. And with renters insurance, you can have peace of mind knowing that you're financially protected whether you are found liable or not.
Considering how much it would cost to hire a lawyer, replace or repair damages to property or your personal items, and pay for possible settlement costs, tenant insurance is a great way to ensure your financial well-being remains intact.
Is tenant insurance more expensive?
Tenant insurance is generally very affordable and depending on which Ontario cities you live in, it can often cost between $15 and $30 per month, or around $300 for the entire year. For the comprehensive protection tenant insurance provides, this small price to pay is worth it for most renters out there.
How to save money on renter's insurance coverage
At BrokerLink, we believe that tenant insurance should be affordable and accessible to all renters in Ontario and the rest of Canada. If you're concerned about how much tenant insurance may cost, don't panic; BrokerLink has got your back. Here are some of the best ways you can get the cheapest tenant insurance without sacrificing your coverage:
Shop around and compare tenant insurance quotes
Each insurance provider in Canada will have varying insurance rates and coverage options for you to choose from. Therefore, it's important to shop around and compare tenant insurance quotes, so you can find the cheapest tenant insurance out there.
You should also consider working with a broker rather than an insurance agent, as brokers have access to different companies and policies. They can essentially help provide quotes from several insurers and help you understand the differences among each of the tenant insurance policies, so you can choose one that best fits your unique needs and budget.
Bundle your insurance policies
If you have any other insurance policies in your portfolio such as car insurance, it's possible to save on your insurance if you purchase your tenant coverage from the same company. Insurance companies often offer rebates to customers who have multiple sets of coverage with them. So, make sure to ask if there are any discounts available with your provider.
In addition to saving on your tenant insurance premium, it'll also be easier for you to manage each individual policy in your portfolio by having your coverage from the same company.
Increase your your insurance deductible
A deductible is the amount you pay out of pocket before your tenant insurance kicks in. By opting for a more expensive deductible, you can reduce your monthly premium. However, as we stated early you need to make sure that you have enough to cover a more expensive deductible if you need to file a claim in the future.
Ultimately, the key here is to find a balance between a deductible you are comfortable to pay and a premium you can afford.
Pay for an entire year's worth of insurance upfront
Paying your insurance premium entirely upfront rather than on a monthly basis can result in a discounted tenant insurance. This is because insurers will be able to save on their administrative costs that are tied to monthly billing processes. If you are able to pay your tenant insurance upfront, consider this option to lower your overall insurance costs.
Ask if you qualify for discounts
Insurance companies in Ontario often provide a variety of discounts that you may qualify for. Common discounts include those for having safety features in your home like, smoke detectors, burglar alarms, fire extinguishers, and more. You can also save on your insurance by being a member of a professional organization. So, make sure that you ask your insurer about all of the possible discounts to maximize your savings!
Maintain a healthy credit score
A lot of insurance providers in Ontario and the rest of Canada will use your credit score as a factor when determining what insurance premiums you will pay. For example, a higher credit score can lead to lower insurance rates.
So, if you're able to, make sure you're paying off your debt as often as you can, that way, you can show that you are reliable to your insurance providers.
Review your tenant insurance coverage regularly
We get it, life changes. So, your tenant insurance should as well! Make sure to regularly review your policy, so that it reflects your current rental needs. Consider getting rid of any unnecessary coverage and inform your insurer about these changes. Ultimately, keeping your policy up-to-date will help you avoid paying for any coverage you no longer need.
How do I file a tenant insurance claim?
Do you need to file a tenant insurance claim? Here is what you need to do to ensure a smooth process from start to finish:
1. Review your rental home insurance policy
Before you file a claim, make sure that you understand the terms and conditions of your tenant insurance. This will help you better understand what is covered and the limits of your coverage.
2. Notify your landlord
Next, you will need to inform your landlord about the incident, especially if it affects the actual property. Additionally, if your claim involves the theft of your personal property, vandalism to your belongings or the property, or any other illegal activity, you will need to report the incident to the police and obtain a copy of the police report, so you can file the report along with the rest of your required documents later on.
Lastly, document any photos of the damage and gather any relevant evidence related to the incident. If possible, create a list of all the damaged, destroyed, or stolen items. Or any injuries that ocurred on the property.
3. Contact your insurance company
Next, you will need to contact your insurance provider as soon as possible to begin the claim process. Be prepared to provide detailed information about the incident. This will include things like the date, time, location, and a description of what happened. You may be asked to fill out a form and submit documents, including the photos you took, damaged item lists, medical records, and the police report if you have one.
4. Work with the Claims Adjuster
Once the claims process has been initiated, you will need to work with your assigned adjuster throughout the duration of the claim. Remember that things may take a while to process moving forward. However, it's important to remain patient and keep in contact with your adjuster for updates on what's happening.
5. Receive compensation
Once your claim is approved, you will receive compensation based on your specific policy terms and conditions. Make sure to use the compensation to repair the damage or replace the lost items as outlined in your claim. Keep in mind that if a lawsuit is filed against you for third-party damages or injuries, the process will look different.
What are insurance policy limits?
Essentially, insurance policy limits are the maximum amounts your insurance firm will pay for a covered claim. For example, if your renters insurance has a $30,000 limit, that's the maximum amount you will receive in compensation in the event that your personal items are damaged due to an insured loss.
Ultimately, understanding these limits can help you be better prepared and ensure that you have comprehensive coverage at the end of the day. So, make sure that you review your renters insurance policies regularly and make adjustments as needed. This will prevent shortfalls in coverage and give you peace of mind, knowing that you are protected in the event that you need to file an insurance claim with your company.
How do I submit a renter's insurance claim in Ontario?
We understand that filing a claim with your insurance company can be daunting, which is why BrokerLink is here to help you every step of the way. While the process can look a little differently for all customers, here is a general guideline of what you need to do to ensure that the process runs smoothly from start to finish:
1. Review your policy
Start by reviewing your insurance documents. This will help you determine whether the damage caused falls under a covered claim that is listed in your policy. It can also give you a better idea about what your coverage limits are.
2. Contact your landlord
The next thing you need to do is notify your landlord that damage happened to the property. Further, if your insurance claim is dealing with a break-in, vandalism, theft, or other criminal activities, you will need to contact local police authorities to explain what happened.
3. Collect evidence
If you are able to, document the damage by taking photos and videos. You can also create a list of what was damaged in your home. All of this information and evidence will need to be submitted during your claims process.
4. Reach out to your insurance firm
Now it's time to contact your insurance firm. An insurance agent will ask you a bunch of questions regarding the incident, so make sure you are prepared with information about what happened. They may also ask you to fill out a claim application.
5. Communicate with your adjuster
Once the claim is filed, an adjuster will be assigned to your case. It's important that you keep open communication throughout the process. Going forward, keep in mind that things could take some time to process. To get updates on the situation, it's important that you stay patient and keep in touch with your adjuster as often as possible.
6. Get compensated for your loss
You will be compensated according to the terms and conditions of your particular policy after your claim is accepted. As specified in your claim documents, be sure that you use the money to replace any lost or damaged items.
If you have any questions about an insurance claim, do not hesitate to reach out to the experienced brokers at BrokerLink for assistance!
Get competitive tenant insurance quotes with BrokerLink today!
Navigating tenant insurance can be daunting, but with the help of the experienced brokers from BrokerLink, you can get customized coverage options tailored to your unique needs in no time!
We've got locations across Canada. So, if you would like to work with a broker in person, please don't hesitate to come visit us in one of our offices! If you can't make it in person, feel free to give us a call directly, and one of our team members would be more than happy to speak with you at any time.
Looking for a tenant insurance quote right away? Use our online tenant insurance quote to get competitive, customized quotes from the comfort of your own rental home. It's really that easy!
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