Tenant Insurance 101: Protecting Belongings in Rentals

Tenant insurance is a type of policy that is designed to protect you and your belongings in case of covered damage or loss. It acts as a financial cushion so that you’re able to recoup any losses that you may suffer. While it’s not required under Canadian law, it’s good to have as an extra precaution.

Basics of Tenant Insurance Coverage

Also known as ‘renter’s insurance,’ tenant insurance is an insurance product that caters to those who rent property. It works on top of landlord insurance, which generally covers an entire property and its shared spaces; it fills the gaps to address whatever’s not included, particularly personal belongings and liability.

Tenant insurance usually protects your personal belongings. In case of events that are covered under the policy, you may get compensation from your insurance company for such things as replacements, repairs, or other related expenses that you might otherwise have to pay out of pocket.

Tenant insurance also typically includes personal liability coverage, which financially aids you when and if you accidentally cause property damage or bodily injury to others within your rented property.

Tenant insurance coverage may vary. It’s best to discuss your plan with your insurance provider to ensure that you get adequate protection that fits your needs and budget.

Identifying Insurable Belongings

When getting tenant insurance, it’s important to understand what items are covered by your policy and, more importantly, which ones are not. In the case of the latter, you may have to get additional add-on coverage to include them.

This particularly concerns more valuable items, such as jewelry or rare artwork, but it may also extend to everyday items that hold expensive price tags such as smartphones, laptops, and appliances or furniture.

Tips for Documenting Possessions

To properly identify insurable belongings, it helps to keep a detailed inventory of your valuables and to keep this list updated should there be any additions or changes in the value of your things. It’s also recommended to keep receipts, appraisals, or other proof of the value of the specified items.

You can document possessions by taking photos or videos of them and making copies of these files, along with details of the items.

It’s best to have digital and physical versions of these files for easy access and sharing.

Understanding Coverage Limits and Exclusions

Tenant insurance policies vary per provider and plan, and it’s important to understand the limits and exclusions that come with your coverage. Most basic tenant insurance policies will cover your personal belongings in case of theft, fire, or loss.

Beyond that, your things might not be protected in excluded circumstances, such as natural disasters. These plans also usually include personal liability, but there may be limits to what you can claim.

Make sure to go over coverage limits and exclusions with your insurance provider to ensure that you have enough protection for your belongings in your rented property.