Is tenant insurance too expensive?

Some people think tenant insurance is expensive. Aside from the price, which is generally affordable, it also gives you peace of mind. This little overview will give you a better understanding of what tenant insurance offers.

According to the Insurance Bureau of Canada, almost 4 in 10 tenants in Quebec don’t have home insurance.1 Some tenants believe that tenant insurance only covers personal property, but it covers much more than that.

Liability insurance

Tenant insurance automatically includes liability insurance - This link will open in a new window.. In the event of an accident or negligence, liability insurance protects you if you’re held responsible for unintentional bodily injury or property damage affecting another person. With this coverage, you’re always protected, even abroad! For just a few dollars, you can get covered up to $1 million or $2 million.

This protection can prove useful in several situations.

Here are a few concrete examples of when you may be covered:

In your home

  • You pop a dish in the oven and forget about it. It causes a fire that spreads to the neighbours.
  • You forget to turn off the tap and the bath overflows. The water damages your building.
  • A friend comes over for dinner and breaks their arm falling down the snow-covered stairs you’re responsible for maintaining.

Outside your home

  • Your dog bites a passerby and injures their leg.
  • You crash into another skier and they suffer serious head injuries which prevent them from working.

On vacation

  • You inadvertently damage a piece of furniture in your hotel room.
  • You take a bath and accidentally flood the basement of the chalet you’re renting.
  • While working on your barbecue skills, you accidentally set fire to the shed.

Replacing your property

Even if you don’t have a lot of personal property, it’s important to you. Would you be able to pay the total cost of replacing some or all of your property in the event of an incident? Take the time to calculate the value of everything that you own. You might be surprised! Some everyday objects that we don’t think about are costly to replace. This includes:

  • your computer
  • your appliances
  • your bicycle

Your insurance generally includes replacement cost coverage for your property. However, the coverage may be subject to certain conditions and limitations. If you have valuable property, you should let your advisor know so they can offer protection that meets your needs.

Relocation in the event of a loss

What happens if you have to temporarily leave your home following a fire or extensive water damage? Spending a few nights in a hotel can be fun, but it can also be costly! You might be lucky enough to have a generous family member or friend who can offer accommodation if you need it, but when the incident is covered under your tenant insurance, you might also be eligible for additional living expenses (accommodation, food and travel) if you’re unable to remain in your home during the work. Contact your insurer to find out more about the terms of your insurance coverage.

Is tenant insurance mandatory? No. Is it necessary? Yes!

In Quebec, purchasing tenant insurance is not mandatory. However, several tenants believe (wrongly) that their landlord’s insurance covers them in the event of a loss. However, you’re responsible for protecting you and your belongings and this might even be stipulated in your lease.

Still think it’s too expensive?

Here are 4 ways to reduce the cost of your premium.

1. Choose a higher deductible

The deductible is the amount that you must pay in the event of damage. The higher the deductible, the lower the insurance premium. You can decide the deductible that you’re prepared to pay in the event of a loss.

2. Combine insurance products and take advantage of discounts

If you have a vehicle, you can save by choosing the same insurer for vehicle and home coverage.

3. Share the premium cost

So your roommate doesn’t have insurance. Ask your insurer to add them to your policy so they can also be protected. By having 1 rather than 2 separate policies, you’ll benefit from a lower premium and share the cost.

4. Check if you’re covered under another insurance policy

If you’re a full-time student, you might be covered under your parents’ home insurance. All you have to do is check with their insurer.

Take inventory of your belongings

The best way to make your life easier is to take an inventory of your belongings and update it regularly. The Insurance Bureau of Canada - External link. This link will open in a new window. created a tool that makes the job easier. Save proof of your property either by taking photographs or scanning invoices. This practice may be helpful if you need to submit a claim.

When you compare tenant insurance to the financial implications of a loss, it often doesn’t appear that expensive after all. Feel free to contact your insurer if you have any further questions or if you’d like to find out more about the protection that best suits your situation.

Recommended for you