What is Tenant Insurance?
Tenant Insurance is a form of insurance where the tenant of a house can acquire insurance to protect the contents of his home. A fixed amount called the premium amount has to be paid in the case of tenant insurance. This is calculated based on the value of the property and potential risks. Potential risks include neighbourhood crime level and even the durability of electrical wiring. The premium amount that you pay goes into a pool that consists of premiums paid by other homeowners or renters.
This article discusses the essential reasons for acquiring tenants insurance,
What are the Reasons for Obtaining Tenant Insurance?
Information gathered from Insurance in Canada disclosed that a renter should have tenants or renter’s insurance. The key reasons to have tenants insurance are the following: It usually includes public liability insurance protection in the event someone gets injured in your rental unit or if you are responsible for an injury away from the rental and the person affected decides to take you to court; It covers your personal belongings or contents if they are stolen, damaged or lost due to a fire: It can cover your property if you are a student away from home or your belongings left in a vehicle; It can also cover upgrades made to your rental unit; and, It can cover living expenses if you have to move out of your rental unit unexpectedly due to a fire or other insurable reason. You can also purchase options like earthquake, sewer backup or specific content insurance in addition to your standard tenant insurance policy.
Why will People Need Tenant Insurance?
Canadians will need tenants insurance to manage or cope with liability. You can always be liable for anything that happens in your apartment that you are renting. If you have problems in your residential area, the responsibility and liability belongs to the lessee and not the landlord. If any case is taken to court and you lose, you would incur court charges in addition to the settlement cost. The contents of your apartment are definitely not covered by the owner's insurance policy. If there is a fire in your apartment, there is no coverage for your belongings. In short, the value of tenant insurance should not be ignored.
What is the Position of Insurance Companies on this Matter?
In Canada, most insurance companies set an amount called the deductible amount. The insurance company will only pay for losses that are valued more than the deductible amount. If the deductible amount is set at $250, the company would not replace anything that comes under the insurance clause that is valued less than $300. If the loss of any valuable mentioned in the insurance clause is valued at $400, only $100 would be covered by the company. Insurance policies can be bought either directly from an insurance company or through its agents or an insurance broker whose job is to find an appropriate insurance policy. Insurance coverage is needed the moment you become the legal owner or a tenant.
The Consumers’ Point of View
Canadian consumers have to discern the needs and benefits of tenant insurance. It is part of their responsibility to know the steps to accomplish. The government has made it easier for them.
The task of finding insurance companies has been made easier by the INSURANCE BUREAU OF CANADA. This organisation represents around 90% of the insurance companies in Canada that provide tenant insurance. Policies range over a number of price tags, services and coverage. It also provides assistance in choosing the best possible tenant insurance for your house. The bureau has offices at:
HEAD OFFICE: 777 Bay Street, Suite 2400, P.O Box 121, Toronto, Ontario M5G 2C8. Telephone No: 416 - 362 - 2031 Fax No: 416 - 361 – 5952.