Tenant Insurance in Red Deer

Red Deer tenant insurance 101

Before buying renters insurance, we suggest asking an insurance broker: What is tenant insurance? A licensed insurance broker in Red Deer will be able to answer this question and more.

Like most forms of insurance, tenant insurance is designed to protect policyholders from risk. As a form of home insurance, tenant insurance is specially designed to safeguard renters of homes against the risks that they face. These risks vary from theft and liability claims to damage to a tenant’s personal belongings. Since tenants and homeowners face many of the same risks, these policies tend to look very similar.

For instance, both homeowner’s insurance and tenant insurance in Red Deer usually contain liability coverage and contents coverage. However, the two differ because since the tenants do not own the place in which they reside, they are not required to pay for damage to the property's physical structure. This is normally covered by dwelling coverage in homeowner’s insurance plans, but they are not part of tenant insurance plans. Instead, damage to the physical structure of a rented space is part of landlord insurance.

Is tenant insurance compulsory in Red Deer, Alberta?

The Government of Alberta does not mandate tenant insurance, but there are still some cases in which renters may be obligated to purchase it. If you are wondering whether you need tenant insurance, we suggest reviewing the terms and conditions of your lease agreement. If you are required to purchase renters insurance, your landlord will demand it.

Thus, it will be clearly outlined in your lease contract. Some landlords simply state that all tenants must have a valid tenant insurance policy throughout the duration of the lease. In contrast, others may specify a minimum coverage limit that their renters must have, e.g. $2,000,000 in liability coverage. If your lease agreement has a clause that lists tenant insurance as a requirement, then you are contractually obligated to purchase it if you have signed the lease. Signing the lease and refusing or forgetting to buy coverage could spell trouble down the road and could even result in your eviction.

One final word on mandatory tenant insurance in Red Deer - if your landlord has not made renters coverage compulsory, it is still strongly recommended that you purchase some form of insurance due to the many ways that it can protect you.

What basic tenant insurance coverage looks like in Red Deer

The most basic form of tenant insurance in Red Deer features three main coverage types: contents coverage, additional living expenses coverage, and liability coverage. Anytime you are buying renters coverage, ensure that your policy contains these three types of standard insurance:

Contents coverage

Contents coverage is the type of insurance that will compensate policyholders if their personal items are stolen or damaged due to an insured risk. Given how valuable your personal items are, having contents coverage is essential. If your clothing, furniture, decor, electronics, sporting equipment, etc., is lost or damaged, you can file a claim to replace these belongings. The specific risks that contents coverage can protect against include theft, wind, smoke, fire, explosions, falling objects, and more.

When adding any type of insurance coverage to your Red Deer tenant insurance policy, you must select a coverage limit. Think carefully about what you want your coverage limit to be for contents coverage. If you select a limit that is too low, you won’t receive a big enough payout to cover the cost of the damaged items in the event of a total loss.

Experts typically recommend calculating the actual cash value of the belongings inside your rented space and choosing a limit that is close to this. Alternatively, if you prefer to pay a bit more for replacement value coverage, you can calculate your personal belongings' replacement value.

Additional living expenses coverage

Additional living expenses coverage is a form of loss of use coverage. You will be paid to make alternative living arrangements for a set period of time if your rented unit is deemed uninhabitable due to an insured loss. For example, if fire, smoke, an explosion, or lightning damaged your apartment and you couldn’t live in it until it was repaired, additional living expenses coverage would pay for you to stay in a hotel or Airbnb until it was safe to return to your leased home. Other costs that additional living expenses coverage might cover include delivery services, storage unit fees, and food bills.

Liability coverage

Liability coverage comes into play if someone else files a third-party claim against you. For instance, if someone visits your home and injures themselves while on the premises, they could sue you. Without liability coverage, you would have to pay for the cost of the lawsuit and potentially also any related medical expenses on your own. However, with liability insurance, your insurance provider will step in to help cover these costs. Liability coverage for tenant insurance may pay for legal fees, including defence and settlement, medical, and property damage repair bills.

More ways to protect yourself as a Red Deer tenant

Keep reading if you’re looking for additional ways to protect yourself as a Red Deer tenant:

Overland water coverage

Overland water coverage can pay for you to replace personal belongings in your home that are damaged due to water. Specifically, water damage is caused by an overflow of water from a nearby lake or river, melting ice, or heavy precipitation. Thus, overland water coverage is a form of flood insurance. Without some type of flood insurance on your policy, you won’t be compensated in the event that water damages your personal items.

Sewer backup coverage

Sewer backup coverage is a second option if you are looking to add flood coverage to your Red Deer tenant insurance plan. This time, you will be protected if the cause of the water damage is sewage or wastewater backing up and coming out of the drains in your leased space. Again, when you add sewer backup coverage to your policy, your insurer will compensate you for replacing personal belongings damaged due to a sewer backup.

Identity theft coverage

Identity theft coverage can pay for money lost or recovery efforts if you are the victim of identity theft. For example, if someone steals your passport, driver’s licence, credit card, social insurance number, or other form of identification, you can file an identity theft coverage claim.

Personal valuables coverage

Personal valuables coverage is important for Red Deer tenants with many high-value items inside their homes. Examples of high-value items include fine jewellery, musical instruments, vintage wine, original artwork, antique furniture, and other heirlooms. If this sounds like you, then regular contents coverage may not be enough. Think of personal valuables coverage as an upgraded form of contents coverage. With this, you can protect even your most valuable personal belongings.

How insurance companies calculate tenant insurance premiums in Red Deer

Tenant insurance premiums vary from person to person, even among Red Deer residents. This is because insurance companies use complex risk-calculation algorithms that take into account a myriad of factors, from the type of property you rent to your credit score. Continue reading for a breakdown of factors that an insurer is likely to consider when calculating your premium:

• Property type
• Location
• The estimated value of your personal belongings
• Your credit score
• Whether or not you have roommates, and if so, how many roommates you have
• Whether or not you have pets, and if so, how many and what species and breed they are
• Details on the property, such as the building materials, including the roof, plumbing, and electrical
• The heat source of your rental
• Your personal insurance claims history
• Your chosen deductible amounts

To receive an accurate and reliable tenant insurance quote in Red Deer, contact a BrokerLink insurance advisor today. You can also use the online quote tool on our website to receive a free renters insurance quote in as little as five minutes.

Tenant insurance and landlord insurance: the differences

Despite the fact that both pertain to leased homes, there are many key differences between landlord and renters insurance. That’s what makes purchasing a tenant insurance policy so important. Since they are distinct types of coverage, you cannot rely on landlord insurance to protect you. In fact, landlord insurance is specifically designed to protect landlords, not tenants. For instance, landlord insurance will not pay for your personal belongings to be replaced if they are damaged or stolen. You need tenant insurance coverage if you want your belongings to be protected.

Further, landlord insurance only protects against liability claims from tenants. Tenants need their own liability insurance if they want to be protected against third-party claims. On the flip side, property owners need to purchase landlord insurance because their policies contain dwelling coverage, which can pay for property damage repairs if one of their rented spaces suffers structural damage. To learn more about landlord and tenant responsibilities, give the BrokerLink team a call today. We can further explain the differences between landlord insurance and tenant insurance, highlighting the importance of purchasing your own policy.

Buying Red Deer tenant insurance with roommates

Some Red Deer renters have roommates and, therefore, may be wondering if they need to purchase a policy separate from their roommates. The answer is complex, as some insurers will let you purchase one tenant insurance policy for multiple people while others won’t. If your insurance provider allows multiple people to be named on the same renters insurance policy, there are usually limits.

For instance, some insurance providers may only allow a maximum of two, three, or four tenants on one policy. Depending on how many roommates you have, this may not work for you. In addition, some tenant insurance plans only protect the main policyholder, so having individual policies may be the better way to go. It is also worth noting that when more than one person is named on a policy, any of the named policyholders can file a claim.

This means that one of your roommates could file a claim without your knowledge. The more claims filed on your policy, the higher your rates might be if you decide to renew your plan down the road. For this reason, many customers choose to purchase their own tenant insurance plans, independent of their roommates, due to the freedom and control this gives them.

To help you purchase a tenant insurance plan with or without roommates, contact a BrokerLink insurance advisor today. We will make sure that you understand how buying a plan works and how you can be protected against all kinds of losses.

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Contact us

At Red Deer BrokerLink, we’re here to help you with any insurance needs you may have. Whether it’s insuring your home, car, business, recreational items, travel plans, or pets, let us help you find the best coverage possible. We can also provide more information on additional interest home insurance and offer quality tips for first-time renters in Red Deer.

You can reach us by phone, email, or in person by visiting any of our locations across Alberta. No matter how you choose to get in touch, a BrokerLink insurance advisor will be happy to assist you. We also encourage you to take advantage of our free online quote tool that can provide you with a competitive quote in minutes.

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Red Deer renters insurance FAQs

Where can I buy renters insurance in Red Deer, Alberta?

Red Deer residents can purchase renters insurance through an insurance broker or agent. Most insurers offer tenant insurance plans on their websites, as well as in person and over the phone.

How can I lower my Red Deer tenant insurance premium?

You can lower your Red Deer tenant insurance premium by picking higher deductibles instead of low ones, choosing a yearly payment plan rather than a monthly one that might come with extra administrative fees, and making sure that all insurance payments are made on time. In addition, some insurance companies offer tenant insurance discounts to customers who install burglar alarm systems or sewer backup detection devices on their properties. You might even qualify for an employment or education-based discount depending on where you work or where you went to school.

What is not covered by Red Deer tenant insurance?

Red Deer tenant insurance will not cover certain types of damage under any circumstances—namely intentional damage, general wear and tear, or damage that occurs while you are illegally living in a space. In addition, if you do not add flood insurance to your policy, you will not be covered if your personal belongings are damaged by water. The same goes for damage caused by risks that are not outlined in your policy, such as acts of war, terrorism, or earthquakes.

How do I add flood insurance to my Red Deer renters insurance policy?

You can add flood insurance to your Red Deer renters insurance policy by contacting a broker or insurance agent near you and asking about your options. Some insurers allow you to add coverage at any time, while others suggest waiting until your policy is up for renewal. Generally speaking, you should expect for your premium to go up if you add extra coverage to your policy. Tenants may add two of the most common types of flood insurance: overland water coverage and sewer backup detection coverage. Once added, you will be protected if water is responsible for damaging the personal items inside your rented space.

What types of tenant insurance claims are most common in Red Deer?

Theft claims are the type of tenant insurance claim most frequently filed with insurance companies. Other types of claims, like third-party liability claims, fire claims, and flooded basement claims, also occur at a high rate.

Where can I get a free tenant insurance quote in Red Deer, Alberta?

Research the insurance brokerages or companies near you and contact them to see if they offer free quotes. Many insurers now offer free quotes to prospective customers. These quotes are accurate and reliable and usually do not have any strings attached. When requesting a tenant insurance quote, make sure to answer all questions honestly.

If you have any questions, contact one of our local branches.