Now that you understand the perks of renting, you’re thinking : “Do I need tenant insurance? What does it cover anyway?”
Here’s a brief guide to help you understand it better.
1) What is covered?
2) What is a deductible and why you need it?
3) What to do in the event of loss or damage?
1. What is covered?
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Your contents
First of all, your belongings, such as your bike and laptop, are covered whether you’re at home, away or you’re moving to another home.
Are you a student?
Don’t worry! Your stuff is covered even at your student’s residence.
Tenant insurance can cover all your belongings!
In case of claims, your insurer can pay in two different ways:
– the repair or replacement cost of your belongings
– actual cash value
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Third person liability
Third person liability is essential to all home insurance. It will protect you against the damages you may cause to someone and/or to their belongings.
For example, let’s say, that a banana peel makes someone fall on your balcony and the person is seriously hurt, you are responsible for it.
If a fire in your apartment damages your neighbour’s apartment and/or their belongings, you are responsible for it.
This coverage will protect you from having to pay these compensation out of your own pocket, and will also protect you, with legal support, in the eventuality that you are sued because of these incidents.
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Additional living expense (ALE)
Is your apartment unlivable as a result of loss or damage?
Don’t worry!
ALE covers the cost of alternate accommodations and living expenses, if needed.
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You can also be covered for these events:
Lock Repair, Rekeying or Replacement, in the case of theft or loss of keys, this coverage will pay, to repair, rekey or replace the locks.
Moving and Storage Expenses, if you have to move and store your contents because of damages in your apartment, this additional coverage will cover your costs.
Credit or Debit Cards, if an unauthorized use of a credit or debit card is issued in your name, you’re covered.
2. What is a deductible and why you need it?
The deductible is the amount of loss that you must assume when making a claim, so basically, it is what you’ll have to pay out of your pocket if you file a claim.
The highest your deductible is, the less you pay for your tenant insurance, and vice versa.
Also, what is important to know when the same incident applies to both your tenant and auto insurance contracts, the highest deductible will be the only one applicable.
3. What to do in the event of loss or damage?
Don’t panic! Just follow these simple steps.
- Contact us or your insurer immediately,
- Protect your belongings against further losses or damage, if it’s possible,
- Advise the police of any theft or vandalism,
- Take a deep breath. You’re not alone. We understand your situation and we’re here to help you.
The average cost of tenant insurance is, on average, between $12 and $30 per month. It’s a very fair price for peace of mind if you ask us…