Do you really need tenant insurance? The short answer is yes. According to the Insurance Bureau of Canada, about half of all renters don’t take out any kind of tenant’s insurance. This could be due to misconceptions about renters insurance and who has you covered. Here we would like to de-bunk some of these myths and explain why it is so important for renters to be protected financially in the event of major unexpected damages or losses.
For one, as a tenant you are liable – yes, legally responsible – for the harm you cause to any part of your building and to others who live or visit there. For instance, if a faulty toaster starts a fire in your place that damages the hallway or the apartment next door, you could find yourself liable for the cost of repairs to the whole building. We at Hollyburn Properties would like to mitigate this possibility and therefore require all residents of rental apartments to preemptively protect themselves. In fact, you sign on it when sealing the apartment leasing documentation.
Myth #1: It Costs Too Much!
One of the biggest misconceptions about renters insurance is the cost. Hollyburn has set up a Value-Added Partnership with Falkins Insurance and the unbeatable savings are exclusive to our residents. Contents coverage up to $30,000 costs a reasonable $260 for the year. That works out to roughly $21/month. We have tried to negotiate a price that allows everyone to afford some peace of mind. While your possessions may be valuable, liability costs can be enormous.
Myth #2: I’m Covered By My Landlord’s Insurance
The best way to select the coverage appropriate for you is to take an inventory of your possessions. Get to know your stuff and keep your records safe. A good option is available through both the Insurance Bureau of Canada and the Insurance Information Institute. At both websites, the software can be downloaded for storage on a secure server. It’s also a good idea to keep receipts and warranties for big ticket items such as TV’s, computers, or bikes. Receipts serve as proof of ownership and value if you need to make a claim.
Overall, a modest monthly insurance fee could make all of the difference in the event of theft, fire, flood, severe weather events or any other unexpected calamity. Renters insurance is a smart investment that won’t break the bank!